Suppose the government of Germany offers you a 3-year, non-amortizing 50,000 euros loan to entice you to undertake a particular project within its borders. In addition, the government offers you an attractive rate of i_EUR = 10% p.a. when loans of similar risk yield a return of i_EUR = 15% p.a. The German tax rate is 50%. What is the present value of the interest subsidy on this loan?

Select one:

a. EUR 5000.00

b. EUR 2854.03

c. EUR 3108.56

d. EUR 3250.66

e. EUR 4895.60