If a finance payment is stated in an advertisement, what disclosures are required?

When a finance payment is mentioned in an advertisement, numerous disclosures are mandated to ensure that consumers are fully informed about the terms of the financing arrangement. Specifically, the correct answer requires the inclusion of the amount of the down payment, the number and frequency of the payments, as well as the Annual Percentage Rate (APR).

This comprehensive disclosure is critical because it gives potential buyers a clear understanding of their financial obligations over the course of the loan. The down payment amount helps consumers understand their initial investment, while the number and frequency of payments provide insights into the payment schedule and total duration of the financing. The APR, which reflects the true cost of borrowing expressed as a yearly interest rate, is essential for consumers to compare financing options and make informed decisions.

Thus, this complete set of information helps promote transparency in advertising and protects consumers from hidden fees and misleading terms. Other options may not provide all the essential details, leaving potential buyers without crucial information necessary to assess their financing choices fully.