Based on the above, how much interest expense will Hamilton report on its income statement on December 31, 2013? (rounded)

Name: Based on the above, how much interest expense will Hamilton report on its income statement on December 31, 2013? (rounded)
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$35,250 x 3% = $1,057.50 discount; $1,057.50/5 years = $211.50 yearly amortization of discount; $35,250 x 8% = $2,820 annual interest payment; $2,820 + $211.50 = $3,031.50 interest expense

Based on the Above, How Much Interest Expense Will Hamilton