Icecorps is considering leasing an excavator, which has a price of $80,000. Its residual value in seven years is certain to be $11,000. Assume that capital markets are perfect, and there is no risk that Icecorps will default on the lease. If the risk-free interest rate is 5.5% APR with monthly compounding, the monthly lease payments for a seven-year lease of the excavator are closest to:

a.

$1,000

b.

$1,050

c.

$1,060

d.

$1,030