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 Balance Payments Jan. 1 2021 2021 2022 2023 2024 2025 2026 13,000 13,000 13,000 13,000 13,000 13,000 9,128 8,896 8,650 8,389 8,112 13,000 3,872 4,104 4,350 4,611 4,888 Outstanding Balance 165, 141 152,141 148, 269 144,165 139,815 135,204 130,316 2038 2039 2040 2041 13,000 13,000 13,000 22,724 3,165 2,575 1,949 1,286 9,835 10,425 11,051 21,438 42,914 32,489 21,438 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. years Lease term Asset's residual value 2. 3. Effective annual interest rate % 4. Lease payments for United Lease payments for NIC 5. 6. Net investment 7 Total effective interest revenue 8. Right-of-use asset