The Martinezes Are Planning to Refinance Their Home

The Martinezes are planning to refinance their home. The outstanding balance on their original loan is $130,000. Their finance company has offered them two options: ​
Option A: A fixed-rate mortgage at an interest rate of 7.6%/year compounded monthly, payable over a 20-year period in 240 equal monthly installments.
​
Option B: A fixed-rate mortgage at an interest rate of 7.1%/year compounded monthly, payable over a 10-year period in 120 equal monthly installments. (Assume that there are no additional finance charges.)
​
Find the monthly payment required to amortize each of these loans over the life of the loan. How much interest would the Martinezes save if they chose the 10-year mortgage instead of the 20-year mortgage? Round your answers to the nearest cent.
​

A) option A: $1,055.23; option B: $1,516.12; interest saved: $71,197.38
B) option A: $1,516.12; option B: $1,055.23; interest saved: $71,320.80
C) option A: $1,516.12; option B: $1,055.23; interest saved: $71,197.38
D) option A: $1,055.23; option B: $1,516.12; interest saved: $71,320.80