Colorado Sales License Practice Test

Which of the following is NOT required when advertising a closed-end credit sale?

1. Interest rate

2. Tax rate

3. Total sale price

4. Financing terms

The correct answer is: Tax rate

In the context of advertising a closed-end credit sale, the requirements for disclosure include key financial details that allow consumers to make informed choices regarding the credit being offered. The interest rate is essential because it specifies the cost of borrowing and affects the monthly payments. The total sale price is also crucial as it indicates the full amount the consumer would have to pay for the item or service. Additionally, financing terms are necessary to clarify the payment structure and any specific conditions tied to the credit arrangement. The tax rate, while important for understanding the total cost of a purchase in some contexts, is not a mandatory disclosure element specifically related to the terms of a closed-end credit sale in advertisements. Thus, this information does not need to be included in the advertisement itself. It is primarily the loan terms, interest rates, and total cost that must be clearly outlined to ensure transparency for the consumer. This is why the tax rate is the correct answer as it is not required in this specific context.