Sanders Co. is planning to finance an expansion of its operations by borrowing $47,700. 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 $4,770 of the principal each year along with the annual interest based on the unpaid principal balance. Assume the interest rate is 9 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.) Answer is complete but not entirely correct. Amount of Interest $ 47,700 X Under option 1 Under option 2 $ 4,293 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.) Answer is complete but not entirely correct. Amount of Interest 47,700 Under option 1 Under option 2 4,293