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 $1.$ Payments. Effective Interest.Decrease in Balance. Outstanding Balance

$2024$ $ $224,997($outstanding balance$)$

$2024$ $ $17,500($payments$)$ $$17,500($decrease in balance$)$ $$207,497($outstanding balance$)$

$2025$ $ $17,500$ $ $12,450$ $ $5,050$ $ $202,447$

$2026$ $ $17,500$ $ $12,147$ $ $5,353$ $ $197,094$

$2027$ $ $17,500$ $ $11,826$ $ $5,674$ $ $191,420$

$2028$ $ $17,500$ $ $11,485$ $ $6,015$ $ $185,405$

$2029$ $ $17,500$ $ $11,124$ $ $6,376$ $ $179,029$

$$

$$

$$

$2041$ $ $17,500$ $ $4,671$ $ $12,829$ $ $65,017$

$2042$ $ $17,500$ $ $3,901$ $ $13,599$ $ $51,418$

$2043$ $ $17,500$ $ $3,085$ $ $14,415$ $ $37,003$

$2044$ $ $39,223$ $ $2,220$ $ $37,003$ $ $0$

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)$

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?

$3.$ 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.