Scott borrowed $$2,500$ today at an APR of $7\mathrm{.}4$ percent. The loan agreement requires him to repay $$2,685$ in one lump$-$sum payment one year from now. This type of loan is referred to as $a(n)$ :

Multiple Choice

interest$-$only loan.

pure discount loan.

quoted rate loan.

compound interest loan.

amortized loan.