Additional Ch $3$ HW problem on Employee Low or No Interest Loans

Tricia, an avid skier, is employed by Elmwood Inc. She has asked her employer for a $$100,000$ interest free loan that will be used to acquire a Whistler condo, which would be used exclusively for Tricia's ski trips. As she is a highly valued employee, Elmwood is considering her request.

Assume Tricia can acquire a regular mortgage at a rate of $3\%,$ and her marginal tax rate is $30\%.$

Required:

i$)$ If Tricia borrows from the bank, how much additional salary would she need to service the loan?

ii$)$ If Tricia obtains a low interest loan from her employer of $1\mathrm{.}1\%,$ what is the amount of taxable benefit arising from this loan? Assume Tricia receives the loan on February $1$ of the year and the prescribed interest rates for the four quarters are $4\%\mathrm{.}2\%,6\%$ and $8\%.$ Use simple interest for all calculations.