Finance
Vermont's 'annual percentage rate' (APR) disclosure is important because it:
ASets the maximum allowable interest rate
BRepresents the true cost of borrowing, including fees and points, expressed as an annual rate for comparison purposes✓ Correct
CIs always lower than the stated interest rate
DIs the rate the lender charges on the loan balance monthly
Explanation
The APR incorporates the interest rate plus other loan costs (points, fees) into a single annual percentage, allowing borrowers to make apples-to-apples comparisons between different loan offers.
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