What would be the monthly payment for a five-year

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Reference no: EM132604102

Suppose a big equipment has a purchase price of $470 000 and will have a residual market value of $110 000 in five years. The risk-free interest rate is 7.2% APR with monthly compounding. Answer the following:

Question 1: What is the risk-free monthly lease rate for a five-year lease?

Question 2: What would be the monthly payment for a five-year $470 000 risk-free loan to purchase the crane?

Reference no: EM132604102

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