Question: Please show all work and explain 7) Keith borrowed $2,500 today. The loan agreement requires him to repay $2,685 in one lump sum payment one

Please show all work and explain 7) Keith borrowed $2,500 today.

Please show all work and explain

7) Keith borrowed $2,500 today. 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): 1) Pure discount loan. 2) Amortized loan. 3) Compound interest loan.| 4) Quoted rate loan. 5) Interest-only loan

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