Refer to the situation described in BE 5–16. What amount did the company borrow, assuming that the first of the five annual $10,000 payments was not due for three years?

Data from in BE 5-16

A company borrowed money from a local bank. The note the company signed requires five annual installment payments of $10,000 beginning one year from today. The interest rate on the note is 7%. What amount did the company borrow?