Question
Suppose an H1200 supercomputer has a cost of $300,000 and will have a residual market value of $120,000 in 7 years. Therisk-free interest rate is
Suppose an H1200 supercomputer has a cost of $300,000 and will have a residual market value of $120,000 in 7 years. Therisk-free interest rate is 6.4% APR with monthly compounding.
a. What is therisk-free monthly lease rate for a 7-year lease in a perfectmarket?
b. What would be the monthly payment for a 7-year $ $300,000 risk-free loan to purchase theH1200?
Note: Round the monthly interest rate to at least six decimal places.
a. What is therisk-free monthly lease rate for a 7-year lease in a perfectmarket?
The present value of the lease payments is $_________ (Round to the nearestdollar.)
Therisk-free monthly lease rate for a 7-year lease in a perfect market is $ ______. (Round to the nearestdollar.)
b. What would be the monthly payment for a 7-year $300,000 risk-free loan to purchase theH1200?
The monthly payment for therisk-free loan is $_________. (Round to the nearestdollar.)
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