The vehicle above is a 2023 Kia Niro EV (plug-in electric vehicle). Its MSRP is $39,550. Suppose you have $5,000 in cash to use as a down payment, and you finance the remainder of the purchase price using a loan from your credit union at 4.5% per year for a 5-year (60-month) loan.

Required:

What journal entry would you make to record the purchase of the car?

What would be the amount of your monthly payment? Show your work.

Suppose the Federal Reserve Bank decides to raise interest rates just before you buy the car, and as a result, the credit unions interest rate rises to 5.5%. By how much would that increase your monthly car payment as compared to what you computed in part (A)?

When you make the first monthly payment at the end of month 1 (under the original 4.5% interest rate assumption), how much of the payment would represent interest, and how much would be principal (the amount that goes toward reducing your loan balance)?

Give the journal entry you would make to record the first monthly payment.

(Optional - bonus points available) Prepare an amortization schedule to show the breakdown of each of the 60 monthly payments into principal and interest and that show the loan balance declining to exactly zero (within a few cents) after the 60th payment. I HIGHLY recommend Excel or Google Sheets (or Numbers).