Finance
Under the Truth in Lending Act (TILA), Wisconsin lenders must disclose the annual percentage rate (APR), which is:
AThe same as the note interest rate
BThe true cost of credit expressed as an annual rate, including interest, points, and certain fees✓ Correct
CThe rate after all prepayments are made
DA Wisconsin-specific rate determined by the Banking Division
Explanation
The APR reflects the true cost of borrowing by including the interest rate plus certain fees (like origination fees and points) expressed as an annual rate, allowing borrowers to compare loans.
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