Effective Interest Decrease in Balance Jan. 1 Payments 2021 2021 53,000 2022 53,000 2023 53,000 2024 53,000 2025 53,000 2026 53,000 47,640 46,997 46,276 45,470 44,566 53,000 5,360 6,003 6,724 7,530 8,434 Outstanding Balance 450,000 397,000 391,640 385,637 378,913 371,383 362,949 2038 2039 53,000 53,000 53,000 63,801 2040 2041 20, 141 16,198 11,782 6,836 32,859 36,802 41,218 56,965 134,985 98,183 56,965 0 Required: 1. What is the lease term in years? 2. What is the asset's residual value expected at the end of the lease term? (Round your answers to nearest whole dollar.) 3. What is the effective annual interest rate? (Round your percentage answer to 1 decimal place.) 4. What is the total amount of lease payments for United? (Round your answers to nearest whole dollar.) 5. What is the total amount of lease payments for NIC? (Round your answers to nearest whole dollar.) 6. What is United's net investment at the beginning of the lease (after the first payment)? (Round your answers to nearest whole dollar.) 7. What is United's total effective interest revenue recorded over the term of the lease? (Round your answers to nearest whole dollar.) 8. What amount would NIC record as a right-of-use asset at the beginning of the lease? (Round your answers to nearest whole dollar.) 1. Lease term 20 years 2. 1 3 % 4. 5 Asset's residual value Effective annual interest rate Lease payments for United Lease payments for NIC Net investment Total effective interest revenue Right-of-use asset 6. 7 8