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You value the home at $1,000,000 (one million dollars) over the course of your life. The home will cost $600,000, which includes the $400,000 price
You value the home at $1,000,000 (one million dollars) over the course of your life.
The home will cost $600,000, which includes the $400,000 price tag for the house itself, $100,000 in mortgage interest payments, and $100,000 in repair costs.
You value the apartment you'd live in at $800,000 over the course of your life, and it will cost $500,000 in rent
What is the economic surplus ofbuying the house? Don't include commas or dollar signs in your answer.
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