AFM Question on FRA

Libor – 5%
Libor may increase or decrease by 0.5%
FRA agreement is 4%
We can borrow or invest at libor – 0.3%

For receipts: assuming libor increased
Since FRA agreement rate is less than 5.5%, we will pay the bank the difference % on the invested amount for the duration for which it was invested. If FRA was more than 5.5%, then the reverse would happen and the bank would pay us the difference % on the invested amount for the duration for which it was invested.

For payments: assuming libor increased
Since FRA agreement rate is less than 5.5%, the bank will pay us the difference % on the borrowed amount for the duration for which it was borrowed. If FRA was more than 5.5%, then the reverse would happen and we will pay the bank the difference % on the borrowed amount for the duration for which it was borrowed.

Im assuming the same logic is applied when libor decreases as well.

Is my understanding correct? I just want to make sure that the above explanation is correct.

Thank you!