Suppose an H1200 supercomputer has a cost of 150,000 and will have a residual market value of $60,000 in 4 years. The risk-free interest rate is5.8% APR with monthly compounding.
a. What is the risk-free monthly lease rate for a 4-year lease in a perfect market?
b. What would be the monthly payment for a 4-year$ $150,000 risk-free loan to purchase the H1200?
Note: Round the monthly interest rate to at least six decimal places.
The present value of the lease payments is
(Round to the nearest dollar.)
The risk-free monthly lease rate for a 4-year lease in a perfect market is_____
(Round to the nearest? dollar.)
b. What would be the monthly payment for a 4-year $150,000 risk-free loan to purchase the H1200?
The monthly payment for the risk-free loan is
(Round to the nearest dollar.)