Disclosure laws require that a borrower be quoted the "true cost" of a loan,as reflected in the:
A)internal rate of return (IRR).
B)annual percentage rate (APR).
C)net present value (NPV).
D)flat rate of interest.
E)interest rate on reducing balance.

Question

Quizplus · Accepted Answer

The annual percentage rate (APR) reflects the true cost of a loan, including both the interest rate and any additional fees or charges. It provides a standardized way for borrowers to compare the cost of different loan products. The other options are not commonly used to disclose the true cost of a loan to borrowers.

Disclosure Laws Require That a Borrower Be Quoted the "True