Which of the following is a component that must be disclosed in advertisements using triggering terms?

In the context of advertisements that use triggering terms, the Annual Percentage Rate (APR) is a critical component that must be disclosed. This requirement stems from Regulation Z of the Truth in Lending Act (TILA), which aims to provide consumers with clear and understandable information regarding the cost of credit.

In advertisements that include specific terms such as "monthly payment," "down payment," or "finance charge," the APR must be stated to help consumers better compare the costs of various mortgage options. The APR represents the total annual cost of borrowing, expressed as a percentage, and takes into account not only the interest rate but also any additional costs or fees over the life of the loan. By requiring the disclosure of the APR, consumers are equipped with essential information that enables them to make informed decisions regarding their mortgage options.

The other components, while relevant in various contexts, are not mandatory disclosures in advertisements that use triggering terms. For example, while loan amount and total cost of credit contribute to understanding a loan, they are not required disclosures in the same way that the APR is when specific terms are mentioned.