Adam received a low-interest loan of $25,000 from his employer on January 1st. The loan is to be repaid in equal annual installments at the end of each of five years, along with interest of 2.5%. Adam paid the interest and the first annual installment on December 31. Suppose that the federal prescribed interest rates for employees for the first year of Adam's loan were as follows: 1st Quarter = 5.0%, 2nd Quarter = 5.5%, 3rd Quarter = 6.0 %, 4rth Quarter = 6.5%. What is the amount of Adam's taxable benefit during the first year?

a) $0.00

b) $750.00

c) $812.50

d) $1,000.00