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 in Outstanding Jan. 1 Payments Interest Balance Balance 2021 175,090 2021 12,eee 12,080 163,00 2022 12,600 7,335 4,665 158,335 2023 12,000 7,125 4,875 153,460 2024 12,000 6,906 5,094 148,366 2025 12,cee 6,676 5,324 143,042 2026 12,600 6,437 5,563 137,479 2038 2039 2849 2841 12,600 12,eee 12,800 28,653 2,566 2,141 1,697 1,234 9,434 9,859 10, 303 27,419 47,581 37,722 27,419 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 2. NI 3. Lease term Asset's residual value Effective annual interest rate Lease payments for United Lease payments for NIC 96 4. 5. 6. Net investment 7. Total effective interest revenue Right-of-use asset 8