Question

An employee of Company x received the following loans (rate and amount) from their employer on...

An employee of Company x received the following loans (rate and amount) from their employer on January 1, this year:

4%, $15,000 loan to consolidate debts

3%, $100,000 loan to purchase a home

The following are the prescribed rates for this year:

Q1 5%, Q2 3%, Q3 6%, Q4 5%

The employee paid interest on the loans on January 15, of the following year.

Required: Calculate the total interest benefit (to be included in income). Ignore any leap year impacts.

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