Consider a 5-year lease for a $200,000 bottling machine, with a residual market value of $70,000 at the end of 5 years. If the risk-free interest rate is 6.3% APR with monthly compounding, compute the monthly lease payment in a perfect market for the following leases:

a. A fair market value lease.

b. A $1.00 out lease.

c. A fixed price lease with an$39,000 final price.