Suppose an H1200 supercomputer has a cost of $300,000 and will have a residual market value of $120,000 in 7 years. The risk-free interest rate is 6.4% APR with monthly compounding.

a. What is the risk-free monthly lease rate for a 7-year lease in a perfect market?

b. What would be the monthly payment for a 7-year $ $300,000 risk-free loan to purchase the H1200?

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

a. What is the risk-free monthly lease rate for a 7-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 7-year lease in a perfect market is $ ______. (Round to the nearest dollar.)

b. What would be the monthly payment for a 7-year $300,000 risk-free loan to purchase the H1200?

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