IBM purchased computer chips from NEC, a Japanese electronics concern, and was billed $250$ million payable in three months. Currently, the spot exchange rate is $105$ per dollar and the three$-$month forward rate is $100$ per dollar. The three$-$month money market interest rate is $8$ percent per annum in the U$.$S$.$ and $7$ percent per annum in Japan. The management of IBM decided to use a money market hedge to deal with this yen account payable.

Required:

What is the dollar cost of meeting the yen obligation in three months?

Note: Do not round intermediate calculations. Round your final answer in whole dollars not in millions.

Dollar cost of meeting the yen obligation