Bonita Inc. has decided to purchase equipment from Central Michigan Industries on January $2,2025$ to expand its production capacity to meet customers' demand for its product. Bonita issues a$($n$)$ $$1,120,0005-$year, zero$-$interest$-$bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is $12\%.$ The company will pay off the note in five $$224,000$ installments due at the end of each year over the life of the note.