Fall07: How much can he borrow so that the scholarship will just pay off the loan

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, Fall07: How much can he borrow so that the
scholarship will just pay off the loan?
Topic: Discounting
Level of difficulty: Easy