Question: PJ borrowed $ 2 , 5 0 0 today at an APR of 7 . 4 percent. The loan agreement requires him to repay $

PJ borrowed $2,500 today at an APR of 7.4 percent. The loan agreement requires him to repay $2,685 in one lump sum payment one year from now. This type of loan is referred to as a(n):
amortized loan.
pure discount loan.
quoted rate loan.
interest-only loan.
compound interest loan.
PJ borrowed $ 2 , 5 0 0 today at an APR of 7 . 4

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