anuary $1,2025,$ Carol Lewis signed an agreement, covering $5$ years, to operate as a franchisee of Sheridan Inc. for an initial franchise fee of $$62,000.$ The amount of $$13,000$ was paid when the agreement was signed, and the balance is payable in five annual payments of $$9,800$ each, beginning January $1,2026.$ The agreement provides that the down payment is non refundable and that no future services are required of the franchisor once the franchise commences operations on April $1,2025.$ Carol Lewis credit rating indicates that she can borrow money at $8\%$ for a loan of this type.