Sanders Co$.$ is planning to finance an expansion of its operations by borrowing $$45,600.$ City Bank has agreed to loan Sanders the funds. Sanders has two repayment options: $(1)$ to issue a note with the principal due in $10$ years and with interest payable annually or $(2)$ to issue a note to repay $$4,560$ of the principal each year along with the annual interest based on the unpaid principal balance. Assume the interest rate is $7\mathrm{.}5$ percent for each option.

Required

What amount of interest will Sanders pay in year $1$ under option $1$ and under option $2?($Round your final answers to the nearest dollar amount.$)$

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.$)$

Which option is more advantageous if Sanders wants to minimize costs?Sanders Co$.$ is planning to finance an expansion of its operations by borrowing $$45,600.$ City 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 $$4,560$ of the principal each year along with the annual interest based on the unpaid principal balance.

Assume the interest rate is $7\mathrm{.}5$ percent for each option.

Required

a$.$ What amount of interest will Sanders pay in year $1$ under option $1$ and under option $2?($Round your final answers to the nearest

dollar amount.$)$

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.$)$

c$.$ Which option is more advantageous if Sanders wants to minimize costs?