Exercise 10-1A (Algo) Interest only versus an installment note LO 101 Sanders Company is planning to finance an expansion of is operations by bortowing $45,300. City Eank has agreed to loan Sanders the funds. Sanders has two repaymenk options; (1) to issue a note with the principal due in 10 years and with interest paysble annually or (2) to issue a note to repay $4,530 of the principal each year along with the annual interest bosed on the unpaid principal balance. Assume the interest rate is 10 percent for each option. Required a. What amount of interest will Sanders pay in Year 1 under option 1 and under option 2 ? Note: Round your final answers to the nearest dollar amount. b. What amount of interest will Sanders pay in Yeat 2 uncer eption 1 and under option 2 ? Note: Round your finat answers to the nearest dollar amount