On September $30,2020,$ Peace Frog International $($PFI$)($a U$.$S$.-$based company$)$ negotiated a two$-$year, $3,200,000$ Chinese yuan loan from a Chinese bank at an interest rate of $4$ percent per year. The company makes interest payments annually on September $30$ and will repay the principal on September $30,2022.$ PFI prepares U$.$S$.$ dollar financial statements and has a December $31$ year$-$end. Relevant exchange rates are as follows:

$$

DateU.S$.$ Dollar per Chinese Yuan $($CNY$)$September $30,2020$$$0\mathrm{.}210$December $31,20200\mathrm{.}215$September $30,20210\mathrm{.}230$December $31,20210\mathrm{.}235$September $30,20220\mathrm{.}260$

$$

Prepare all journal entries related to this foreign currency borrowing.

Taking the exchange rate effect on the cost of borrowing into consideration, determine the effective interest rate in U$.$S$.$ dollars on the loan in each of the three years $2020,2021,$ and $2022.$