Toyota is interested in borrowing $5 million for 90 days. Bank of America has quoted a rate that is 1.125 percent under the prime rate of 6.95 percent. Daiwa Bank is offering Toyota a rate that is 0.75 percent over the three-month LIBOR of 4.4 percent.

(a1)

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What is the interest cost on Bank of America loan in dollars? (Do not round intermediate calculations. Round answer to 2 decimal places, e.g. 15.25. Use 360 days for calculation.)

Interest cost

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