The effort required to maintain a scanning electron microscope is known to increase by a fixed percentage each year. A high-tech equipment maintenance company has offered its services for a fee that includes automatic increases of 8% per year after year 1. A biotech company that wanted to use the service offered $65,000 as pre-payment for a 3-year contract to take advantage of a temporary tax loophole. If the biotech company used an interest rate of 10% per year in determining how much it should offer, what was the service fee amount that it assumed for year 1?