In order to add an addition on to their home, Bill and Mary borrowed $80,000 from Mary's father Jim. The money is to be repaid in 5 years and Jim's only other financial requirement is that Bill and Mary pay him the 1% rate per year that he was earning from his online money market account. The mid-term AFR rate is 3%. Additionally, Bill and Mary have net investment income in the current year of $1,500. How much total income must Jim recognize on his taxes for the first year