Diego Jones works for the Bank of Montreal. The bank provides loans to its employees at an annual interest rate of $1\%.$ On April $1$ of the current$$ year, the bank provides Diego with an employee loan in the amount of $ $32$ comma $000$ at the annual interest rate of $1\%.$ The loan requires annual principal repayments of $ $3$ comma $200$ on April $1$ of each year. Diego makes the first annual repayment in the following year. Assume that Canada Revenue$$ Agency's prescribed interest rates for the current year are as$$ follows:

View the prescribed interest rates$\mathrm{.}1$

Calculate the taxable benefit to be included in employment income for Diego Jones in the current year. Assume a $365$ day year. Round your answer to the nearest whole dollar.

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Part $1$

A$.$$ $4$ comma $480$

$ $4$ comma $480$

B$.$$ $965$

$ $965$

C$.$$ $723$

$ $723$

D$.$$ $1$ comma $440$

$ $1$ comma $440$

$1$: Prescribed Interest Rates

bullet Q$1($January $1$ to March$31)=6\%$

bullet Q$2($April $1$ to June$30)=3\%$

bullet Q$3($July $1$ to September$30)=6\%$

bullet Q$4($October $1$ to December$31)=3\%$

Show your work below.