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: (EV 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 15,000 15,000 15,000 15,000 15,000 15,000 12,690 12,482 12,255 12,008 11,739 15,000 2,310 2,518 2,745 2,992 3,261 Outstanding Balance 155,999 140,999 138,689 136, 171 133,426 130,434 127, 173 2038 2039 2040 2041 15,000 15,000 15,000 37,813 5,828 5, 003 4,103 3,122 9,172 9,997 10,897 34,691 55,585 45,588 34,691 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.) 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: (EV 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 15,000 15,000 15,000 15,000 15,000 15,000 12,690 12,482 12,255 12,008 11,739 15,000 2,310 2,518 2,745 2,992 3,261 Outstanding Balance 155,999 140,999 138,689 136, 171 133,426 130,434 127, 173 2038 2039 2040 2041 15,000 15,000 15,000 37,813 5,828 5, 003 4,103 3,122 9,172 9,997 10,897 34,691 55,585 45,588 34,691 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.)