Suppose an H1200 supercomputer has a cost of

$500,000 and will have a residual market value of

$75,000 in 7 years. The risk-free interest rate is

6.1% APR with monthly compounding.

a. What is the risk-free monthly lease rate for a

7-year lease in a perfect market?

b. What would be the monthly payment for a 7-year

$500,000 risk-free loan to purchase the H1200?

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