This is a new problem with new numbers, start the problem over.

A company bought a piece of equipment at the beginning of the year $($January $1,20$X$1)$ by signing the following note payable.

The note is due at maturity and interest is due annually.

Face value $270,000$

Coupon rate $3\mathrm{.}25\%$

Market rate $8\mathrm{.}00\%$

Term $4$

What is interest expense in year $3?$