Assume a bank is in the process of restructuring a $1 million loan. The following information is provided. The current interest rate of the loan is 8% annually and matures at the end of this year. The cost of funds for this category of loan is 8%. There is a 20% probability that the loan will be defaulted and the recovery rate is 0. Here are the restructuring terms: Loan payments will be stretched to 5 years. Interest rate will be reduced by 4% for the next 5 years. Principal payment of $500,000 in years 4 to 5. No upfront fee. The cost of funds for the bank increases to 10% since the risk of the loan increases after restructuring. b. What up-front fee will equate the present values of the old and new loans? Express your answer in dollars, rounded to the nearest cent.