Suppose an H1200 supercomputer has a cost of $ 450,000and will have a residual market value of $ 67,500 in 7 years. The risk-free interest rate is 5.6 % APR with monthly compounding.

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

b. What would be the monthly payment for a 7-year $ 450,000 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 $ 450,000

risk-free loan to purchase the H1200?

The monthly payment for the risk-free loan is $

(Round to the nearest dollar.)