Fig prepares financial statements to 31 March each year. On 1 April 20X8 Fig sold a freehold property to another company Leaf. Fig had purchased the property for $500,000 on 1 April 20W8 and had charged total depreciation of $60,000 on the property for the period 1 April 20W8 to 31 March 20X8.

Leaf had paid $850,000 for the property on 1 April 20X8 at which date its true market value was $550,000.

From 1 April 20X8 the property was leased back to Fig on a ten year operating lease for annual rentals of $100,000 (payable in arrears). A normal rental for such a property would have been $50,000.

Leaf is a financial institution which on 1 April 20X8 charged interest of 10.56% per annum on ten-year fixed loans.

What was the amount of the loan outstanding as at 31 March 20X9?