b) Calculate the total amount that must be repaid if you choose Option 2 (compound interest) c) Compare the two options and justify which repayment option is cheaper.

The formula for the total amount $(A)$ with compound interest is:

where $P$ is the principal amount, $i$ is the annual interest rate, and $n$ is the number of years.

The total amount to be repaid for Option 2 is $\boxed{\text{R}14\,693.28}$.

Assumptions: $P = \text{R}10\,000$, $r = 8\% = 0.08$, $t = 5$ years.
The formula for simple interest total amount $(A_1)$ is:

Total for Option 1: $\text{R}14\,000$
Total for Option 2: $\text{R}14\,693.28$

Comparing the two amounts, $\text{R}14\,000 < \text{R}14\,693.28$.
Therefore, Option 1 is cheaper. This is because simple interest calculates interest only on the principal amount, whereas compound interest calculates interest on the principal and also on the accumulated interest from previous periods, leading to a higher total repayment over time.