Suppose now KSBtech wishes to hedge the transaction exposure of itsnetBrazilian Real (BRL) cash inflows position of +BRL 1,300,000 coming due in6 months using amoney market hedge.Today is April 1, and KSBtech is given the following #BRL/$, exchange rate quotes andannualizedinterest rates on 6-month deposits and loans below:

Spot rate (#BRL/1$)= BRL 5.25/$

6-month forward rate (#BRL/1$)= BRL 5.35/$

Interest Rates on 6-month deposits/loans(all quoted on annual basis):

DepositLending

Brazil2.75%3.00%

U.S.0.50%0.60%

Given this information, how many US$would KSBtech pay or receive its net +BRL 1,300,000 cash flow position6monthsfrom now (on Oct.1)using amoney market hedge?(show your work!).