On April 1, 2019, E Ltd. made a loan of $100,000 to Mr. Walker, a new employee of the corporation, to assist him in purchasing a residence when he moved from Quebec to commence employment in British Columbia. The loan bears interest at 2%, which is to be paid monthly. The principal of the loan is to be repaid in full on April 1, 2028. The prescribed interest rate on April 1, 2019, was 4%. Assuming that the prescribed interest rate throughout 2022 was 3% and only the interest owing on the loan is paid each month, which one of the following amounts represents the increase in Mr. Walkers employment income in 2022 due to the loan?

1. 4000

2. 2000

3. 3000

4. 1000

A. 4000

B. 2000

C. 3000

D. 1000