SOMEONE PLEASE HELPWrite a couple of paragraphs and justify the loan period you select for each of them and why it is suitable for their circumstances. A banks typical loan terms are 10, 15, 20, or 30 years. David and Tara may need to compromise something to get their new home, if so what compromises would you recommend. Include in your summary the amount of interest they will have paid and the balance of the principal after 3 years; plus other financial data that supports the loan period you select for them. David is a nurse, he wants to buy an apartment near his sister. Apartments in her neighborhood cost around $120,000. The bank has approved him for a loan with an interest rate of 3.95%. David is a recent graduate and needs his monthly payment to be low, he can afford to pay about $550 a month. David plans to sell the apartment or refinance the loan within five years when he knows he will be earning more money.

Tara is a nurse, she is 45 years old and wants to buy a vacation home in Florida. She plans on spending $120,000. The bank has approved her for a loan with an interest rate of 3.15%. Tara plans to retire around 60 years old, and wants the loan to be repaid before she retires. Tara was recently promoted and on her new salary can afford to pay around $1000 per month.