A partial amortization schedule for a note payable with interest paid annually that was issued on January $1,$ Year $1,$ is shown next:

Required:

a$.$ What is the annual rate of interest charged on this loan?

b$.$ Using the horizontal financial statements model, record the appropriate amounts for the following two events:

$(1)$ January $1,$ Year $1,$ issue of the note payable.

$(2)$ December $31,$ Year $1,$ payment on the note payable.

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What is the annual rate of interest charged on this loan?