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 4.5%/year compounded monthly, payable over a 25-year period in 300 equal monthly installments. Option B: A fixed-rate mortgage at an interest rate of 4.25%/year compounded monthly, payable over a 12-year period in 144 equal monthly installments.

(a) Find the monthly payment required to amortize each of these loans over the life of the loan.

option A	$694.79
option B	$

(b) How much interest would the Martinezes save if they chose the 12-year mortgage instead of the 25-year mortgage? $