Gra Question 2 (14 marks) Peter is considering applying for a personal loan with an amount of $100,000.- Lender A is offering him an installment loan with an annual percentage rate of 10%. The loan will be repaid in three years with 3 equal annual repayments with the first repayment is made one year from today. Lender A uses the add-on method to calculate the interest. Lender B is offering him an installment loan with an annual percentage rate of 10%. The loan will be repaid in three years with 3 equal annual repayments with the first repayment is made one year from today. Lender B uses the simple interest method to calculate the interest. @ Calculate the difference between the total finance charge of the loan offered by Lender A and B to determine which loan is cheaper. (6 marks) Lender A: $100,000 x = $4 Lender B: $100,000 x 1.331 = $133,1004 (b) Explain why the loan offered by Lender B is cheaper? (4 marks) I What would be the interest and principal portion in the first repayment of Lender B's Loan? (4 marks LL