Final answer:
The appraisal fee is the fee excluded from the APR calculation according to the Truth-in-Lending Act; loan origination, interest rate adjustment, and potential late payment fees are generally included.Option 4 is the correct answer.
Step-by-step explanation:
According to the Truth-in-Lending Act (TILA), the fee that is excluded from the calculation of the annual percentage rate (APR) is the appraisal fee. The annual percentage rate is designed to reflect the cost of credit to the consumer, and while it includes interest and other fees that are considered finance charges, certain fees associated with the loan are not included because they are not seen as direct costs of the credit.
The fees that are often included in the APR calculation are loan origination fees and interest rate adjustment fees, and late payment fees could be included if they are set at the time of the loan origination as a part of the finance charge.
TILA excludes appraisal fees from APR calculation, focusing on credit costs. Loan origination and interest rate adjustment fees are typically included.