Question

The document that contains all amounts needed to calculate a loan’s APR is called the:

Answer 1

It is called the Itemization of Amount Financed. It involves details of items that comprises the amount necessary to calculate the annual percentage rate.

Answer 2

The correct answer is the document that contains all amounts needed to calculate a loan’s APR is called the Itemization of Amount Financed.  

In an annual percentage rate(APR), the Itemization of Amount Financed involves details of items that comprise the amount that must be calculated in the annual percentage rate. This document lists the fees that the lender charged.

An amount financed is the credit available to a borrower when ask for a loan. It is when the borrower has a credit approved from the lender. The amount financed helps to calculate the payments that the borrower must pay over the period of the loan.