Question: David has been awarded a scholarship that will pay $2,500 one year from now. However, he really needs the money today and has decided to

David has been awarded a scholarship that will pay $2,500 one year from now. However, he really needs the money today and has decided to take out a loan. If the interest rate is 8 percent, how much can he borrow so that the scholarship will just pay off the loan?

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