Question

PLEASEEEEE SOMEONE HELP WITH PERSONAL FINANCE QUESTION!!!! PLEAsEEE

Answer 1

Directions: After reading each scenario, calculate the cost of living in the community and state which job the individual should accept. Show all calculations. (Round to two decimal places.) For each of the following questions be sure to follow these steps:

Step 1: Assign each city numbers. One city will be assigned the number 1 and the other the number 2.

Step 2: Write the formula by providing the corresponding information for each city determined by the number it was assigned.

Step 3: Complete the math and indicate which city is a better offer and why.


Janice’s 2 job offers:
a. $42,000.00, Billings, MT, 95.3 cost of living index
b. $48,000.00, Cheyenne, WY, 102.7 cost of living index

Step 1:
Step 2:
Step 3:

Brandon’s 2 job offers:
a. $43,000.00, Atlanta, GA, 97.7 cost of living index
b. $36,000.00, Portland, OR, 111.7 cost of living index

Step 1:
Step 2:
Step 3:

Becky’s 2 job offers:
a. $21,000.00, Minneapolis, MN, 106.1 cost of living index
b. $27,500.00, Omaha, NE, 89.2 cost of living index

Step 1:
Step 2:
Step 3:

Chad’s 2 job offers:
a. $33,000.00, San Diego, CA, 137.8 cost of living index
b. $45,000.00, Las Vegas, NV, 104.8 cost of living index

Step 1:
Step 2:
Step 3:

Answer 2

to make a comparison, you would multiply the salary of one city with the index of the other city

Answer 3

example

a. $42,000.00, Billings, MT, 95.3 cost of living index
b. $48,000.00, Cheyenne, WY, 102.7 cost of living index


you would multiply 42,000 by 102.7 to get 42000*102.7 = 4,313,400

and you would multiply 48,000 by 95.3 to get 48000*95.3 = 4,574,400

Answer 4

so option B is the better offer

Answer 5

hopefully that makes sense

Answer 6

Janice’s 2 job offers:

a. $42,000.00, Billings, MT, 95.3 cost of living index

b. $48,000.00, Cheyenne, WY, 102.7 cost of living index

-------------------------------------------------------------------

Step 1:

Let City 1 be Billings, MT

Let City 2 be Cheyenne, WY

----------

Step 2:

The formulas are

Equivalent Salary of City 1 in City 2 = (Cost of Living Index in City 2)*(Salary In City 1)

Equivalent Salary of City 2 in City 1 = (Cost of Living Index in City 1)*(Salary In City 2)

----------

Step 3:


Equivalent Salary of City 1 in City 2 = (102.7)*(42000)

Equivalent Salary of City 1 in City 2 = 4,313,400


Equivalent Salary of City 2 in City 1 = (95.3)*(48000)

Equivalent Salary of City 2 in City 1 = 4,574,400


So the amount made in City 2 is worth more than the amount made in City 1

Answer 7

see how I'm getting all this?

Answer 8

Brandon’s 2 job offers:

a. $43,000.00, Atlanta, GA, 97.7 cost of living index

b. $36,000.00, Portland, OR, 111.7 cost of living index

-------------------------------------------------------------------

Step 1:

Let City 1 be Atlanta, GA

Let City 2 be Portland, OR

----------

Step 2:

The formulas are

Equivalent Salary of City 1 in City 2 = (Cost of Living Index in City 2)*(Salary In City 1)

Equivalent Salary of City 2 in City 1 = (Cost of Living Index in City 1)*(Salary In City 2)

----------

Step 3:


Equivalent Salary of City 1 in City 2 = (111.7)*(43000)

Equivalent Salary of City 1 in City 2 = 4,803,100



Equivalent Salary of City 2 in City 1 = (97.7)*(36000)

Equivalent Salary of City 2 in City 1 = 3,517,200


So the amount made in City 1 is worth more than the amount made in City 2


This means that the first offer for Brandon is the better offer

Answer 9

Becky’s 2 job offers:

a. $21,000.00, Minneapolis, MN, 106.1 cost of living index

b. $27,500.00, Omaha, NE, 89.2 cost of living index

-------------------------------------------------------------------

Step 1:

Let City 1 be Minneapolis, MN

Let City 2 be Omaha, NE

----------

Step 2:

The formulas are

Equivalent Salary of City 1 in City 2 = (Cost of Living Index in City 2)*(Salary In City 1)

Equivalent Salary of City 2 in City 1 = (Cost of Living Index in City 1)*(Salary In City 2)

----------

Step 3:


Equivalent Salary of City 1 in City 2 = (89.2)*(21000)

Equivalent Salary of City 1 in City 2 = 1,873,200



Equivalent Salary of City 2 in City 1 = (106.1)*(27500)

Equivalent Salary of City 2 in City 1 = 2,917,750


So the second offer is the better offer for Becky

Answer 10

Chad’s 2 job offers:

a. $33,000.00, San Diego, CA, 137.8 cost of living index

b. $45,000.00, Las Vegas, NV, 104.8 cost of living index

-------------------------------------------------------------------

Step 1:

Let City 1 be San Diego, CA

Let City 2 be Las Vegas, NV

----------

Step 2:

The formulas are

Equivalent Salary of City 1 in City 2 = (Cost of Living Index in City 2)*(Salary In City 1)

Equivalent Salary of City 2 in City 1 = (Cost of Living Index in City 1)*(Salary In City 2)

----------

Step 3:


Equivalent Salary of City 1 in City 2 = (104.8)*(33000)

Equivalent Salary of City 1 in City 2 = 3,458,400



Equivalent Salary of City 2 in City 1 = (137.8)*(45000)

Equivalent Salary of City 2 in City 1 = 6,201,000


So the second offer is the better offer for Chad.