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Suppose an H1200 supercomputer has a cost of $450,000 and will have a residual market value of $112,500 in 6 years. The risk-free interest rate is 5.1%. APR with monthly compounding.

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

a. What is the risk-free monthly lease rate for a 6-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 6-year lease in a perfect market is $________ (Round to the nearest dollar.)

b. What would be the monthly payment for a 6-year 450,000 risk-free loan to purchase the H1200?

The monthly payment for the risk-free loan is $______ (round to the nearest dollar)

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