On $1$ January $208,$ a borrower arranged a $$1,110,000$ three$-$year $3\%$ bond payable, with interest paid annually each $31$ December. There was an upfront fee of $$89,011,$ which was deducted from the cash proceeds of the loan on $1$ January $20$X$8.($PV of $$1,$ PVA of $$1,$ and PVAD of $$1.)($Use appropriate factor$($s$)$ from the tables provided. Calculate using effective interest method.$)$

Required:

$1-$a$.$ Calculate the effective interest rate associated with the loan. $($Round your answer to the nearest whole percentage.$)$

Effective interest rate $\%$

$$

$1-$b$.$ What net amount is received on $1$ January $208?$

Net amount

$$

$2.$ Calculate the interest expense reported by the borrower for each year. $($Round your effective interest rate to the nearest whole percentage and your final answers to the nearest whole dollar amount.$)$

$\backslash$table$[[$Period$,$Int. Expense$],[1,],[2,]]$