On January 1, 2021, 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: (FV of $1, PV of $1, FVA of $1, PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Effective Interest Decrease in Outstanding Balance Payments Balance 210,001 Jan. 1 2021 2021 2022 2023 2024 2025 2026 18,000 18,000 18,000 18,000 18,000 18,000 13,440 13, 121 12,779 12,414 12,023 18,000 4,560 4,879 5,221 5,586 5,977 192,001 187,441 182,562 177,341 171,755 165,778 2038 2039 2040 2041 18,000 18,000 18,000 23,064 4,538 3,596 2,588 1,509 13,462 14,404 15,412 21,555 51, 371 36,967 21,555 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.) X Answer is complete but not entirely correct. 1. Lease term 20 years 2. Asset's residual value $ 0 x 3. Effective annual interest rate 7.0 % 4. $ 365,064 X Lease payments for United Lease payments for NIC 5. $ 365,064 X 192,001 6. Net investment $ 7. Total effective interest revenue $ 155,063 X 8. Right-of-use asset $ 210,001