Baylor Bank believes the New Zealand dollar will appreciate over the next year from $.48 to $.50. The following annual interest rates apply:(show all steps for your solution)

Dollars: lending rate: 7.10% borrowing rate: 7.50%

New Zealand dollar (NZ$) lending rate: 6.80% borrowing rate: 7.25%

Baylor Bank has the capacity to borrow either NZ$10 million or $5 million. If Baylor Bank's forecast is correct, what will its dollar profit be from speculation over a one year period (assuming it does not use any of its existing consumer deposits to capitalize on its expectations)?