Meredith borrows $50,000 on an interest-free basis from her employer on January 1, 2016. The prescribed rate is3%, 2%, 3% and 3% for each of the four quarters of the year, respectively. Meredith uses the money to purchase an investment on which she earns interest at 4.5%. What is the overall increase in her income from this investment for the 2016 taxation year? 4. a) S 875 b) $1,375 c) $ 1,500 d) $ 2,250