You are negotiating to make a 10-year loan of $35,000 to "ABC" Company. According to the agreement "ABC" Company will pay the loan in the following manner: 1. $2,500 at the end of Year 1, 2. $5,000 at the end of Year 2, 3. $7,500 at the end of Year 3, 4. $10,000 at the end of Year 4, 5. fixed but currently unspecified cash flow at the end of each year from Year 5 through Year 10. "ABC" Company is essentially a low risk company, so you are confident the payments will be made. Accordingly, you regard an 8% as an appropriate rate of return on a low risk but illiquid 10-year loan.

What is the value of the payment that will occur in year 5?