On January $1,2025$ Karen Harrid signed an agreement, covering $5$ years, to operate as franchisee of Crane Inc. For an initial franchise fee of $$64,000.$ The amount of $$13,000$ was paid when the arrangement was signed and the balance is payable in $5$ annual payments of $$10,200$ each, in the beginning of January $1,2025.$ The agreement provides that the down payment is nonrefundable and that no future services are required of the franchisor once the franchise commences operation on April $1,2025.$ KAren Harrid$$s credit indicates that she can borrow money at $8\%$ for a loan of this type.