E connect All applicable Exercises in Series A cre availab All applicable Exercises in Series A re availab Mct Hll ACCOUNTING Connect Plus Accounting. Exercisd 10-1A ) Interest only versus an installment note Sanders Co. is planning to finance an expansion of its operations by borrowing S150,000. C Bank has agreed to loan Sanders the funds. Sanders has two repayment options:(1) to issue a note with the principal due in 10 years and with interest payable annually or (2) to issue a note to repay $15,000 of the principal each year along with the annual interest based on the unpaid prin. cipal balance. Assume the interest rate is 8 percent for each option. City Required a. What amount of interest will Sanders pay in year 1 (1) Under option 1? (2) Under option 2? b. What amount of interest will Sanders pay in year (1) Under option 1? (2) Under option 2? Explain the advantage of each option. c