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.) 21 Payments Jan. 1 2021 2021 2022 2023 2024 2025 2026 12,000 12,000 12,000 12,000 12,000 12,000 Effective Decrease in Outstanding Interest Balance Balance 145,000 12,000 133,000 9,310 2,690 130,310 9,122 2,878 127,432 8,920 3,080 124,352 8,705 3,295 121,057 8,474 3,526 117,531 2038 2039 2040 2041 12,000 12,000 12,000 34,724 4,059 3,503 2,908 2,272 7,941 8, 497 9,092 32,452 50,041 41,544 32,452 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 dolla 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 years 2. Asset's residual value