1. Calculate the finance charge for a credit card that has the given average daily balance and interest rate. (Round your answer to the nearest cent.) Average daily balance: $115.61; monthly interest rate: 1.75%
2. Johnson Industries is currently paying a variable rate of LIBOR+3% on a loan and desires greater certainty with regard to their loan payments. Refinancing is currently not available, so Johnson Industries decide to pursue an interest rate swap agreement. The swap terms are LIBOR for 4%. What is Johnson Industries after swap loan cost and is it variable or fixed?