Rico firm plans to borrow $85 million in the money market at a current interest rate of 4.75 percent. However, the borrowing rate will float with market conditions. To protect itself, the firm has purchased an interest-rate cap of 5.25 percent to cover this borrowing.

5-1. If money market interest rates on these funds suddenly climb to 5.6 percent as the borrowing begins, how much in total interest will the firm owe for its one-month borrowing?

5-2. How much of an interest rebate will the bank receive for its one-month borrowing?

Please show your work and Write your answers with two decimal points