Padma has a ten-year loan of $250,000 from River City Bank on which she makes annual interest payments based on one-year effective LIBOR plus 1.2%. Simultaneously, Padma has entered a ten-year swap agreement with notional principal of $250,000. For the swap, she makes annual payments at a fixed annual rate of 3.8%. In return, she receives annual payments at the one-year effective LIBOR plus 50 bps. The one-year effective LIBOR is 4.2% at the beginning of the fourth year. Calculate Padmas net swap payment and net interest payment for the end of the fourth year.

Please show all work, no excel or spreadsheets.