Refer to the situation described in BE 6-8. What amount did Canliss borrow assuming that the first of the five annual $10,000 payments was not due for three years?
In BE 6-8, Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $10,000 beginning one year from today. The interest rate on the note is 7%. What amount did Canliss borrow?