Which of the following is included in the disclosures required under 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 key elements that must be disclosed under TILA is the annual percentage rate (APR), which represents the cost of borrowing on an annual basis as a percentage of the total loan amount. This allows consumers to better understand the cost of credit over time and facilitates comparison between different credit offers.

The inclusion of the annual interest rate in the disclosures is essential to promoting transparency and ensuring that consumers can make educated financial decisions. Other options, such as advertising fees, operational costs of the dealership, and dealer commissions, while potentially relevant in the context of vehicle financing or sales, are not specifically mandated disclosures under TILA. This is why the annual interest rate is the correct answer in this context, as it is a fundamental disclosure that supports consumer awareness and protection regarding lending practices.