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 Decrease Jan. in Outstanding Interest Balance 1 Payments Balance 2021 142,209 2021 11,000 11,000 131,209 2022 11,000 7,873 3,127 128,082 2023 11,000 7,685 3,315 124,767 2024 11,000 7,486 3,514 121, 253 2025 11,000 7,275 3,725 117,528 2026 11,000 7,052 3,948 113,580 2038 11,000 2039 11,000 2040 11,000 2041 27,165 3,055 2,579 2,073 1,538 7,945 8,421 8,927 25,627 42,975 34,554 25,627 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.) years % 1. Lease term 2. Asset's residual value 3. Effective annual interest rate 4. Lease payments for United 5. Lease payments for NIC 6. Net investment 7. Total effective interest revenue 8. Right-of-use asset