As a swap dealer you acted as a counterparty in an interest rate swap. Assume that the notional principal for the swap was $8.5 million. You will need to make 6 annual payments of 8% interest. You will collect annual floating payments and the floating rate that you will receive is 8.2%. If interest rates do not change over the next five years, what will be your annual net inflow?

a.

$17,000

b.

$40,000

c.

$25,000

d.

$10,000

e.

$55,000