1 Exercise 10-1A (Algo) Interest only versus on installment note LO 10-1 DO Sanders Co. is planning to finance an expansion of its operations by borrowing $48,000. City Bank has agreed to loan Sanders the funds Sanders has two repayment options to issue a note with the principal due in 10 years and with interest payable annually or 2) to issue a note to repay $4800 of the principal each year alor with the annual interest based on the unpaid principal balance Assume the interest rate is tt percent for each option Required What amount of interest will Sanders pay in Year under option and under option 2(Round your final answers to the nearest dollar amount) Amount of Inter Under option Under option 2 "F b. What amount of interest wil Sanders pay in Year 2 under option 1 and under option 27 (Round your final answers to the nearest dollar amount) Amount or Linden Underplan 2 rences b. What amount of interest will Sanders pay in Year 2 under option 1 and under option 2? (Round your final answers to the nearest dollar amount.) Amount of Interest Under option 1 Under option 2 c. Which option is more advantageous to Sanders? Option 1 Option 2