Chuck Bouchard was hired by Granite Inc. on March 15, 2018. He had lived with his parents until April 2018, at which time he purchased a new house. Under the terms of his employment contract, he received a housing loan on April 1, 2018, of $105,000 at a rate of 2%. He pays interest on the loan on a monthly basis. Assume the 2018 prescribed interest rates applicable to employee loans are as follows:

• First quarter 6%
• Second quarter 5%
• Third quarter 5%
• Fourth quarter 3%

What is Chucks taxable benefit on the above loan for 2018?

Question 6 options:

a) Nil

b) 1575.00

c) 1843.98

d) 2362.50

e) 3937.50