What must be disclosed according to the Truth-in-Lending Act?

The Truth-in-Lending Act (TILA) is designed to promote informed use of consumer credit by requiring disclosures about its terms and costs. One of the fundamental disclosures mandated by TILA is the requirement to provide all finance charges associated with the loan, as well as the Annual Percentage Rate (APR). The APR reflects the total cost of borrowing on an annual basis, which allows consumers to better compare different financing options.

By disclosing both finance charges and the APR, TILA ensures that borrowers are fully aware of their financial obligations and can make educated decisions regarding loans and credit. This comprehensive disclosure helps eliminate confusion and enhances transparency in lending practices. Therefore, the correct answer highlights the importance of providing both aspects to protect consumers in credit transactions.