Suppose an H1200 supercomputer has a cost of $400,000

and will have a residual market value of $120,000 in 5 years. The risk-free interest rate is 6.1%

APR with monthly compounding.

a. What is the risk-free monthly lease rate for a 5-year lease in a perfect market?

b. What would be the monthly payment for a 5-year $400,000

risk-free loan to purchase the H1200?

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