PLEASE SHOW ALL WORK AND FORMULAS

Question 1

Suppose an H1200 supercomputer has a cost of $200,000 and will have a residual market value of $70,000 in 6 years. The risk-free interest rate is 5.5% APR with monthly compounding.

A) What is the risk-free monthly lease rate for a 6-year lease in a perfect market?

A2) The risk-free monthly lease rate for a 6-year lease in a perfect market is ?. (Round to the nearest dollar.)

B. What would be the monthly payment for a 6-year $200,000 risk-free loan to purchase the H1200?

Note: Round the monthly interest rate to at least six decimal places.