On January 1, 2024, National Insulation Corporation (NIC) leased equipment from United Leasing under a finance lease. Lease payments are made annually. Title does not transfer to the lessee and there is no purchase option or guarantee of a residual value by NIC. Portions of the United Leasing's lease amortization schedule appear below: January 1 2024 2024 2025 2026 2827 2028 2029 2041 2042 2843 2044 Payments $ 53,000 $ 53,000 $ 53,000 $ 53,000 $ 53,000 $ 53,000 Required: $ 53,000 $ 53,000 $ 53,000 $ 63,801 Effective Interest 1. Lease term 2. Asset's residual value 3. Effective annual interest rate 4. Total lease payments for United 5. Total lease payments for NIC $ 47,648 $ 46,997 $ 46,276 $ 45,478 $ 44,566 6. Net investment 7. Total effective interest revenue 8. Right-of-use asset $ 20,141 $ 16,198. $ 11,782 $6,836. Decrease in Balance $ 53,000 $ 5,360 $ 6,083 $ 6,724 $ 7,538 $ 8,434 $ 41,218 $ 56,965 Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) $ 32,859 $36,802 1. What is the lease term in years? 2. What is the asset's residual value expected at the end of the lease term? 3. What is the effective annual interest rate? Note: Enter your answer as a percent rounded to 1 decimal place. 4. What is the total amount of lease payments for United? 5. What is the total amount of lease payments for NIC? 6. What is United's net investment at the beginning of the lease (after the first payment)? 7. What is United's total effective interest revenue recorded over the term of the lease? 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? Note: Round your answers to nearest whole dollar. Outstanding Balance $ 450,000 $ 397,000 $ 391,640 $385,637 $ 378,913 $ 371,383 $362,949 years $ 134,985 $ 98,183 $ 56,965 $0 96