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On April 1, Catherine's employer provided her with a $100,000 loan at an annual interest rate of 5%. Assume that the prescribed interest rate was

On April 1, Catherine's employer provided her with a $100,000 loan at an annual interest rate of 5%. Assume that the prescribed interest rate was 3% for the year. If Catherine paid interest on the loan but did not pay any principal during the year what is her taxable benefit? 

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