True or False: To calculate the amount financed, you should look at the principal amount of the loan.

The amount financed is not simply the principal amount of the loan; it encompasses the actual amount that the borrower will receive after all deductions have been made. This includes subtracting any prepaid finance charges and certain other fees that may apply. The correct understanding of amount financed is crucial, as it reflects the total financial obligation of the borrower, including costs beyond just the loan principal itself.

Considering this, the correct assertion would be that the statement is false, as looking only at the principal amount overlooks other important financial elements that contribute to the total amount financed. Thus, the answer aligns with a comprehensive interpretation of the calculations required by Regulation Z in the Truth in Lending Act, ensuring that borrowers have a clear understanding of their financial commitments.