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.
