On January 1, 2016, Curly made a two-year, $25,000 interest-free, demand loan to his best friend, Larry. (Note: answer is not $500)

On January 1, 2016, Curly made a two-year, $25.000 interest-free, demand loan to his best f iend, Larry. Larry o take a 6-month tour of Europe. Larry's only income in 2016 was $500 in investment income. The applicable Federal rate is 3% compounded semiannually. What is the amoumoruny's imputed interest income in 2016