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Risk-free monthly lease rate for four-year lease in perfect

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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.)

Reference no: EM131532441

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