Homework 3. Part 3 Saved Help Save & Exit Submi Check my work 11 Wally is employed as an executive with Pay More Incorporated. To entice Wally to work for Pay More, the corporation loaned him $28.000 at the beginning of the year at a simple interest rate of 1 percent. Wally would have paid interest of $3,360 this year if the interest rate on the loan had been set at the prevailing federal interest rate Part 1 of 2 128 points a. Wally used the funds as a down payment on a speedboat and repaid the $28,000 loan (including $280 of interest) at year-end. Does this loan result in any income to either party? eBook Print References Yes O No Indicate the amount below. Gross Income Pay More Wally $ 3,080