Company ABC has an existing debt of 2,000,000 on which it makes annual payments at an annual effective rate of LIBOR plus .5%. ABC decides to enter into a swap with a notional amount of 2,000,000 on which it makes annual payments at a fixed annual effective rate of 3% in exchange for receiving payments based on LIBOR. The annual effective LIBOR rate over the first year 2.5% and is expected to be 4% in the second year. Calculate the expected net interest payment that ABC makes at the end of the second year, (including the interest on the original loan).