Finance
The Truth in Lending Act (TILA) requires lenders to disclose the Annual Percentage Rate (APR) because:
AIt sets the maximum interest rate lenders can charge
BIt enables borrowers to compare the true cost of credit across different loan products✓ Correct
CIt determines the property tax assessment
DIt replaces the need for a good faith estimate
Explanation
TILA requires disclosure of the APR to enable borrowers to compare the true cost of credit across different loan products by expressing all fees and interest as an annualized percentage.
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