payment al the maturit Theycan pay both principal and interest as they go by making equal payments each period.This is called an amortized loan ty date.This is called an interest-only loan. 3. ersus amortized loans Roseanne wants to borrow $40,000 for a period of fiveyears. The lender offers her a choice of three payment structures: Pay all of the interest (10% per year)and principal in one lump sumat the end of fiveyears; I. Pay interest at the rate of 10% per year for fouryears and then a finalpayment of interest and principal at the end of the fifthyear; 2. Pay fiveequal payments at the end of each year inclusive of interest andpart of the principal. 3. Under which of the three options will Roseanne pay the least interest and why?Calculate the total amount of the payments and the amount of interest paid under each altemative