Question

by law, lenders are required to report the interest rate that factors in all of the financing costs. this interest rate is known as the _______.
prime rate
teaser rate
annual percentage rate (apr)
loan ragte

Explanation:

To solve this, we analyze each option:

• Prime rate: The interest rate banks charge their best customers, not for reporting all financing costs.
• Teaser rate: A low initial rate to attract borrowers, not for reporting all costs.
• Annual Percentage Rate (APR): By law, lenders must report APR as it includes all financing costs (interest, fees, etc.).
• Loan ragte: Likely a typo, and not a valid term for this purpose.

Answer:

C. Annual Percentage Rate (APR)