After taxes and applicable fees, a courier company leases a mid-sized delivery van with a lease price of $58,397.45. Monthly lease payments are $763.29 and a $5,500 down payment is required.

a) If interest charged is 2.89% compounded quarterly, what is the residual value of the van after the lease expires in 4 years? [3 points]

b) To pay off the residual value of the lease found in part (a), the courier company obtains a 3-year loan with 3.15% interest compounded annually. What is the size of the month-END payment required to pay off the loan in 3 years?