-/5 Points] DETAILS TANAPMATH7 4.2.026.EP. MY NOTES ASK YOUR TEACHER A state lottery commission pays the winner of the Million Dollar lottery 40 installments of $25,000/year. The commission makes the first payment of $25,000 immediately and the other n = 39 payments at the end of each of the next 39 years. Assume that the balance on deposit with the bank earns interest at the rate of 4%/year compounded yearly. Determine the present value (in dollars) of the 39 future payments. (Round your answer to the nearest cent.) Determine how much money (in dollars) the commission should have in the bank initially to guarantee the payments. (Round your answer to the nearest cent.) $ -/5 Points] DETAILS TANAPMATH7 4.3.054. MY NOTES ASK YOUR TEACHER The Martinezes are planning to refinance their home. The outstanding balance on their original loan is $125,000. Their finance company has offered them two options. (Assume there are no additional finance charges. Round your answers to the nearest cent.) Option A: A fixed-rate mortgage at an interest rate of 3.5%/year compounded monthly, payable over a 30-year period in 360 equal monthly installments. Option B: A fixed-rate mortgage at an interest rate of 3.25%/year compounded monthly, payable over a 15-year period in 180 equal monthly installments. (a) Find the monthly payment required to amortize each of these loans over the life of the loan. option A $ option B $ (b) How much interest would the Martinezes save if they chose the 15-year mortgage instead of the 30-year mortgage?