Suppose a Mining Forklift has a cost of $450,000 and will have a residual market value of $135,000 in 6 years. The risk-free interest rate is 5.8% APR with monthly compounding.

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

b. What would be the monthly payment for a 6-year $450,000 risk-free loan to purchase the Forklift?

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

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

The present value of the lease payments is $ ?.(Round to the nearest dollar.)

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 $450,000 risk-free loan to purchase the Forklift?

The monthly payment for the risk-free loan is $ ? (Round to the nearest dollar.)