Suppose the purchase price of a tractor is $100,000, its residual value in five years is certain to be $15,000, and there is no risk that the lessee will default on the lease. Assume that capital markets are perfect and the risk-free interest rate is 4% APR with monthly compounding. The monthly lease payments for a four year lease of the tractor are closest to:

Select one:

A. $1750

B. $1825

C. $1610

D. $1733