7. Suppose you wish to take out a mortgage to buy a new house for your family....
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7. Suppose you wish to take out a mortgage to buy a new house for your family. However, the houses you like exceed your budget. You are considering three options: choose a neighborhood that is less fashionable and, therefore, the prices are lower; take out a mortgage with a longer maturity period; or instead of buying a house, buy a larger apartment in your current neighborhood. How would you evaluate these options and choose the optimal one?
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