Suppose that in the fixed-income securities market, the one-year, two-year, and three-year spot interest rates are 6.000%, 6.500%, and 7.000%, respectively. (That is, R_0,1 = 6.000%, R_0,2 = 6.500% , and R_0,3 = 7.000%.) . In addition, in the forward interest rate market, the one-year forward rate two-years from now (F_2,1) is 8.500%. (This is the only forward rate available in the market.)

Assume that an arbitrager can borrow or lend exactly $2,000 in the forward interest rate market. She generates an arbitrage strategy such that her net cash flows Now (t=0), at the end of Year 1 (t=1), and at the end of Year 2 (t=2) are equal to zero. However, she generates some positive cash flow at the end of Year 3 (t=3). What is the maximum amount of her net cash flow at the end of Year 3 (t = 3)?

(Round-off to at least 4 decimal places. If your answer is $1.23453, then type 1.2345)