Mary and Paul are negotiating a mortgage loan with an S&L. The house has a sales price of $360,000. Mary and Paul agree to put 20% down. The S&L presents to them two alternative financing options:

Option 1	Option 2
30-year 7.0% fixed rate paying no points	30-year 6.8% fixed rate paying 1.8 points

Assume Mary and Paul plan on living in the house for 30 years. What is the Net Present Value of their savings?