7. On January 1, 2021, ABC Bank loaned P2,000,000 to a borrower. The contract specified that the loan had an 8-year term and a 10% interest rate. Interest is payable annually every December 31 and the principal amount will be collected on December 31, 2028. Interest is collected for 2021. On December 31, 2021, the bank determined that the loan has a 12-month probability of default of 20% and expected to collect only 92% of the loan. Round off present value factor to 4-decimal places. Compute the carrying value of the loan as of the end of December 2021