You work in a bank that specializes in large institutional deposits. The deposits are for a set term but can be canceled by the client early if reinvested in a new contract with the bank and the client agrees to a penalty. The reinvestment amount is the accumulated value of the original contract (that is, the penalty is paid from a separate account and does not impact the reinvestment amount). The bank’s policy is that the penalty is equal to 80% of the present value of the future interest difference between the new contract and the contract canceled. Mr. Rich purchased an investment contract for $1,000,000 on January 1, 2022 and will earn an annual effective compound rate of interest of 4% until the contract expiration on December 31, 2031. On March 31, 2024 interest rates rise to 24% for deposit contracts maturing in 2031. Mr. Rich cancels his original contract and purchases a new one with the same maturity date as the original. What is the penalty Mr. Rich much pay for the cancelation?