1- Pacific Airlines Co. awards members of its Frequent Fliers Club one free round-trip ticket, anywhere on its flight system, for every 50,000 miles flown on its planes. How would you account for the free ticket award? Please be specific.

2- Differentiate between a fixed mortgage rate and a variable mortgage rate. Is one better than the other? If so, why would the one that is not as good still be used. Please provide examples.