Caitlin has finished her schooling and training to be a dental hygienist. She has two job offers that she is considering.

\begin{tabular}{|c|c|c|}
\hline & \textbf{Caitlin's Job Offer Comparison} & \\
\hline & \textbf{Job 1: Albuquerque, NM} & \textbf{Job 2: Ann Arbor, MI} \\
\hline \textbf{Salary} & \[tex]$54,000 & \$[/tex]61,000 \\
\hline \textbf{Benefits} &
\begin{tabular}{l}
\[tex]$2,500 bonuses, \\
health insurance, \\
401(k)
\end{tabular} &
\begin{tabular}{l}
Health insurance, \\
401(k)
\end{tabular} \\
\hline \textbf{Average Monthly Rent \& Utilities} & \$[/tex]925 & \[tex]$1,300 \\
\hline
\end{tabular}

Which job would offer the best annual income considering the cost of living in each location?

A. Job 2 is a better choice because the annual income after rent and utilities is \$[/tex]59,700, but that of Job 1 is \[tex]$55,575.
B. Job 2 is a better choice because the annual income after rent and utilities is \$[/tex]45,400, but the income for Job 1 is \[tex]$41,900.
C. Job 1 is a better choice because it costs \$[/tex]4,500 less per year to live there.



Answer :

Let's examine Caitlin's two job offers in detail and determine which job offers the best annual income after considering the cost of living for rent and utilities.

### Job 1: Albuquerque, NM
- Salary: \[tex]$54,000 - Benefits: \$[/tex]2,500 bonuses, health insurance, 401K
- Average Monthly Rent & Utilities: \[tex]$925 First, we need to calculate the total annual rent and utilities cost for Job 1: \[ \text{Annual Rent & Utilities for Job 1} = 925 \, \text{USD/month} \times 12 \, \text{months/year} = 11,100 \, \text{USD/year} \] Next, we calculate Caitlin's total annual income after subtracting the annual rent and utilities. We'll consider the bonus as part of her income: \[ \text{Total Annual Income for Job 1} = (\text{Salary} + \text{Bonus}) - \text{Annual Rent & Utilities} \] \[ \text{Total Annual Income for Job 1} = (54,000 \, \text{USD} + 2,500 \, \text{USD}) - 11,100 \, \text{USD} = 45,400 \, \text{USD} \] ### Job 2: Ann Arbor, MI - Salary: \$[/tex]61,000
- Benefits: Health insurance, 401K
- Average Monthly Rent & Utilities: \[tex]$1,300 First, we need to calculate the total annual rent and utilities cost for Job 2: \[ \text{Annual Rent & Utilities for Job 2} = 1,300 \, \text{USD/month} \times 12 \, \text{months/year} = 15,600 \, \text{USD/year} \] Next, we calculate Caitlin's total annual income after subtracting the annual rent and utilities: \[ \text{Total Annual Income for Job 2} = \text{Salary} - \text{Annual Rent & Utilities} \] \[ \text{Total Annual Income for Job 2} = 61,000 \, \text{USD} - 15,600 \, \text{USD} = 45,400 \, \text{USD} \] ### Comparison of Total Annual Income: - Job 1 (Albuquerque, NM): \$[/tex]45,400 after annual rent and utilities
- Job 2 (Ann Arbor, MI): \$45,400 after annual rent and utilities

Since both jobs provide the same annual income after accounting for rent and utilities, Caitlin can make her decision based on other factors such as her personal preferences for location, the professional environment, the specific details of health insurance and 401K plans, and other non-monetary benefits.

In conclusion, Caitlin should take the job in her favorite city, as both job offers result in the same annual income after considering the cost of living expenses for rent and utilities.