The price of a small cabin is $60,000. The bank requires a 5% down payment. The buyer is offered two mortgage options: 20-year fixed at 7.5% or 30-year fixed at 7.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 20-year option?

Find the monthly payment for the 20-year option. (Round to the nearest dollar)

Find the monthly payment for the 30-year option. (Round to the nearest dollar)

Calculate the total cost of interest for both mortgage options. How much does the buyer save in interest with the 20-year option?