On 1/1/21, you purchase a used car for $5,000 with a 12% loan (note) payable monthly. Payments of principal and interest are made at the end of each month for the next three years. Required a. Compute the amount of your monthly payment. b. Create an effective interest amortization table in Excel for the entire life of the car loan payable using the following columns: payment number, payment date, beginning carrying value, effective interest rate, interest expense, cash paid (principal plus interest), reduction of principal), and ending carrying value. Note: your time value table may not include the factor you need; you have to determine which of the following you should use: PV single sum, 3 periods at 12% 0.71178 PV single sum, 36 periods at 1% 0.69892 PV ordinary annuity, 3 periods at 12% 2.40183 PV ordinary annuity, 36 periods at 1% 30.10751 PV annuity due, 3 periods at 12% 2.69005 PV annuity due, 36 periods at 1% 30.40858 The goal is to prove that, at end of the car loan, the entire principal of the loan has been repaid. As with bond amortization schedules, these spreadsheets are important in practice because they serve as the basis for journal entries for every payment date and adjusting journal entries at year-end. NOTE: You should use normal Excel calculations and formulas for the completion of this assignment. However, you are NOT allowed to use a pre-built Excel template c. Once your table is complete, tell me: What is the journal entry on 1/1/21 to purchase the car? What is the journal entry on 1/31/21, the first payment date? What is the journal entry on 2/28/21, the second payment date? What would happen if you paid an additional $50 in principal each month? When would the loan be paid off? How much interest would you save over the life of the loan?