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

Scott 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 vear from now. This type of loan is referred to as a/n):
interest-onily toan.
pure discount loan.
quoted rate loan.
compound interest loan.
Scott borrowed $ 2 , 5 0 0 today at an APR of 7 .

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