1. MSU Bank believes the New Zealand dollar will depreciate over the next 6 months from NZ$2.20/USD to NZ$2.25/USD.The following 6-month interest rates apply:(the rates are periodic rates so you do not need to adjust them at all - we do not need to multiply by 180/360 or anything like that)

CurrencyLending (deposit)RateBorrowingRate

Dollars1.25%1.55%

New Zealand dollar (NZ$)1.75%2.05%

MSU Bank has the capacity to borrow either NZ$15 million or $8 million.If MSU Bank's forecast if correct, what will its U.S. dollar profit be from speculation over the 6-month period?