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Ben incurs a debt of $2500 with an annual interest of 24%. This is a monthly rate of 24/12 = 2%. Each month his debt
Ben incurs a debt of $2500 with an annual interest of 24%. This is a monthly rate of 24/12 = 2%. Each month his debt accumulates interest, but he makes a payment of 3% of the outstanding balance. Notice that no interest is charged during the first month, this is called a "grace period."
Question: What will be Ben's new balance at the end of the month?
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