Answer: a)Interest expense for Year 2020=$46, 977.50 b) see explanation column
Explanation:
a) Amount of Note payable =  $550,000
Present Value  factor for 3 years at 12%
= PV = 1/(1+r) ^n  
1/ (1+ 12%)^3 =(0.892857143)^ 3 =  0.71178
Present value of Note for land at 2020 = $550,000  x  0.71176 = $391, 479
.136
Interest expense for Year 2020=	$391, 479.136  x  12%= $46, 977.50
b) Face value of note = $5,000,000
Present value factor for 4 years at 10 % = 
= PV = 1/(1+r) ^n  
1/ (1+ 10%)^4 =(0.909090909)^ 4 =  0.68301345
 Present value of the note = $5,000,000 x 0.68301345= $3,415,067.28
Discount on note payable =$5,000,000 -$3,415,067.28 =$1,584,932.72
Journal to record amount of interest to report for 2020
Date   Account                        Debit                      Credit
 Jan 2020   Cash                  $5,000,000
Discount on notes payable                             $1,584,932.72   
Notes payable                         $5,000,000
 interest revenue                                              $1,584,932.72