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

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

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