On April 1, 20x1, Sarah Davis received a $250,000 loan from her employer, Bounty Corporation. The actual rate of the loan was fixed at 3%, and the going market rate at the time the loan was taken out was 6%.

Relevant Facts:

• $200,000 of the loan was made to allow Sarah to purchase a new condominium in downtown for her own inhabitation.
• $50,000 of the loan was made to allow Sarah to purchase shares in a corporation related to her employer.
• On January 25th of each year, Sarah writes a cheque to Bounty Corporation in payment of the interest incurred for the previous year.
• Principal repayments of $10,000 annually will commence at the end of 20x5.

	1st	2nd	3rd	4th
Prescribed Rates:	20x1 4%	5%	4%	5%
	20x2 6%	7%	7%	8%

Required: Calculate Sarahs employment benefit on the $250,000 loan, for 20x2.