Effective Interest Decrease in Balance Payments Jan. 1 2021 2021 2022 2023 2024 2025 2026 11,000 11,000 11,000 11,000 11,000 11,000 7,873 7,685 7,486 7,275 7,052 11,000 3,127 3,315 3,514 3,725 3,948 Outstanding Balance 142,209 131,209 128,082 124,767 121,253 117,528 113,580 2038 2039 2040 2041 11,000 11,000 11,000 27,165 3,055 2,579 2,073 1,538 7,945 8,421 8,927 25,627 42,975 34,554 25,627 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 $ 27,165) % 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