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In 2020 sarah borrowed $25,000 from her employer at a rate of 2% interest. During this year, the perscribed interest rate was 3% during quarters 1 and 2, in quarter 3 the perscribed rate was 4% and n quarter 4, the perscribed rate was 3%. Sarah's loan was recived on April1, 2020 and she paid her 2020 interest in full on december 31, 2020.
What is the amount of the interest benefit to sarah for 2020?
What is the amount of the interest benefit in 2020 if sarah borrowed the money from her employer to assist her with a home purchase?
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