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Part 2: Mortgage DecisionTo expand, El Cap Climbing Company (ECCC) is considering taking out a mortgage for a new store location, a nonresidential real property that includes land and a building. Leah is unsure if she has the cash flow to take on any more debt. She asked you to create a loan amortization schedule for the proposed mortgage loan. Then, you’ll create a chart that represents the portion of each payment that goes toward principal and interest.A. Prepare the following:A loan amortization scheduleA chart showing the percentage of the payment applied to the principal and interestLoan Amortization ScheduleFirst, you’ll need to create a loan amortization schedule in the downloaded Excel spreadsheet. Create the table on the tab named “Part 2 Loan Amortization Sched.” The following table illustrates the payments and interest amounts for a fixed-rate, 30-year, $500,000 mortgage, at a five-percent interest rate. The monthly payment will be $2,684.11.Payment NumberPayment Amount5% Interest ExpensePrincipalBalanceAnnual Interest Expense0 500,000.00-12,684.112,083.33600.78499,399.22 22,684.112,080.83603.28498,795.94 …break in the sequence…Totals 466,278.03500,000.00 3592,684.1122.222,661.892,671.41 3602,682.5411.132,671.41-855.56The table serves as an example of what you’ll create in Excel. Note that the table shows only the figures for the first and the last year of payments; you’ll need to calculate the amounts for the remaining payments and fill them in.Once you’ve determined how each amount in the table is obtained, you can use relative and absolute cell references to fill in the full 360 payments.The following is an explanation of the columns in the table:Payment number—The first column in t

he table shows the 360 payments required to pay off the mortgage loan (30 years, with 12 monthly payments per year).Payment amount—The second column shows the monthly payment amount.Interest—The third column shows the portion of the monthly payment that goes to interest.Principal—The fourth column shows the portion paid toward the principal.Balance—The fifth column shows the starting balance of $500,000, and the remaining balance each month after the principal is subtracted.Annual interest expense—The last column provides a running total of the interest expense on the mortgage for the entire 12-month period. It’s the amount that would be reported on the financial statements.Totals—The “Totals” under the “5% Interest Expense” and “Principal” columns show the final totals for the 30-year life of the mortgage.Mortgage Principal and Interest ChartNext, you’ll create a chart following these steps. Create the table on the tab named “Part 2 Chart.”Start by selecting the Interest Expense and Principal columns. Make sure to select the column headers and values. Don’t select the Totals row.Click on the Insert tab and select a “Stacked Column.” Make sure to label the x-axis (payment month) and y-axis (dollars), and include a legend for the two values (interest and principal).Your final chart should be set up similar to the chart below, with the data populating the chart. (The increments don’t need to be the same).B. Answer the following:How can you describe the relationship between time and the amount paid towards principal and interest?Knowing what you know about ECCC’s cash flow from Part 1, is it reasonable to believe that ECCC can take on this new debt?