Suppose an H1200 supercomputer has a cost of $300,000 and will have a residual market value of $75,000 in 44 years. The risk-free interest rate is 5.8% APR with monthly compounding.

a. What is the risk-free monthly lease rate for a 44-year lease in a perfect market?

b. What would be the monthly payment for a 44-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

44-year lease in a perfect market? The present value of the lease payments is

_________________.

(Round to the nearest dollar.)