Suppose an H1200 supercomputer has a cost of $400,000 and will have a residual market value of $80,000 in 7 years. The risk-free interest rate is 5.5% APR with monthly compounding.

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 $400,000 risk-free loan to purchase the H1200?

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