Because of her outstanding performance, Tricia Fox is negotiating a significant increase in her annual compensation. After considering various alternatives, she has decided her preferable increase would be in the form of a $300,000 interest-free loan. She will use the proceeds of the loan to purchase income-producing investments. This means any interest on the loan, either amounts paid or amounts imputed as a taxable benefit, will be fully deductible. Other information that is relevant to this decision is as follows: Her investments are expected to provide a pre-tax return of 11%. The loan is made on January 1 of the current year for a four-year term. She can acquire a similar-term $300,000 bank loan at an annual