On July 1, 2020, Stealth Company sold a machine (classified as inventory) that had a list price of $115,200. The customer paid $19,200 cash and signed a three-year, $96,000 note that specified a stated interest rate of 3%. Annual interest on the full amount of the principal is payable each June 30. The principal is payable on June 30, 2023. The market rate of interest for a note of this risk is 5%.

a. Compute the present value of this note.