Hewitt Inc. has entered into an equity swap arrangement that allows it to swap a fixed interest rate of 8 percent in exchange for the rate of appreciation on the Dow Jones Industrial Average each year over a three-year period. The notional principal is $1 million. If the Dow depreciates by 1 percent, Hewitt will:

have to make a payment of $70,000.

have to make a payment of $90,000.

receive a payment of $70,000.

receive a payment of $90,000.