Suppose an H1200 supercomputer has a cost of $400,000 and will have a residual market value of $80,000 in 7 years. The? risk-free interest rate is 5.5% APR with monthly compounding.
a. What is the? risk-free monthly lease rate for a 7?-year lease in a perfect? market?
The present value of the lease payments is ?$____? (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 $400,000 ?risk-free loan to purchase the? H1200?
The monthly payment for the? risk-free loan is $ ____. (Round to the nearest dollar)