What must be disclosed if the periodic interest rate is variable in an advertisement?

When an advertisement includes information about a periodic interest rate that is variable, it is essential to disclose that the rate is variable. This is critical because it directly affects the cost of borrowing for consumers. A variable rate can change over time, influencing the total amount of interest a borrower pays throughout the life of the loan. By clearly stating that the interest rate is variable, consumers are informed about the potential for fluctuations in their payment amounts, allowing them to make more informed decisions regarding their financial commitments.

Other options, while they may be important in certain contexts, do not specifically address the necessity of disclosing the nature of a variable interest rate in advertisements. The focus on highlighting that the rate is variable ensures compliance with Truth in Lending regulations, protecting consumers from misleading advertising practices.