You are working for a small private equity hedge fund, run by Lachlin, who entered a 6:18 Forward Rate Agreement (FRA) six months ago in order to borrow at a fixed rate. The FRA was for a face value of $7,000,000 with Lachlin paying 5.30% pa. The market rate right now is 4.72% pa and is expected to be 5.55% pa in another 6 months time.

Calculate the payment that must be made to the lender upon settlement of this FRA. Assume that each period is 30 days long and there are 360 days in a year.

Give your answer in dollars and cents to the nearest cent. Settlement amount = $