A borrower is offered a 30 year, fully amortizing ARM with an initial rate of 3.2%. After the first year, the interest rate will adjust each year, using 1 yr LIBOR as the index, plus a margin of 175bp.The price of the property is $8,000,000 and the loan will have an initial LTV ratio of 75%. At the first reset date, 1 year LIBOR is at 3%. Given this information, what is the borrower's payment during the 2nd year of the loan? (State your answer as a positive number, rounded to the nearest cent.)