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 Jan. 1 Payments 2021 2021 12,500 2022 12,500 2023 12,500 2024 12,500 2025 12,500 2026 12,500 10,281 10,104 9,912 9,705 9,481 12,500 2,219 2,396 2,588 2,795 3,019 Outstanding Balance 141,014 128,514 126,295 123,899 121,311 118,516 115,497 2038 2039 2040 2041 12,500 12,500 12,500 39,472 4,898 4,290 3,633 2,924 7,602 8,210 8,867 36,548 53,625 45,415 36,548 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. Lease term 20 years 2. Asset's residual value 39,472 3. Effective annual interest rate 12.5 X % 4. $ 289,472 5. Lease payments for United Lease payments for NIC Net investment $ 250,000 6. $ 128,514 7. Total effective interest revenue $ 148,458 101,834 X 8. Right-of-use asset $