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\begin{tabular}{|c|c|c|}
\hline \multicolumn{3}{|c|}{Caitlin's Job Offer Comparison} \\
\hline & Job 1: Albuquerque, NM & Job 2: Ann-Arbor, MI \\
\hline Salary & \[tex]$54,000 & \$[/tex]61,000 \\
\hline Benefits & \begin{tabular}{l}
\[tex]$2,500 bonuses, \\
health insurance,
\end{tabular} & \begin{tabular}{l}
Health insurance, \\
401K
\end{tabular} \\
\hline Average Monthly Rent \& Utilities & \$[/tex]1,600 & \[tex]$1,300 \\
\hline
\end{tabular}

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

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.

D. The jobs have equal annual incomes of \$45,400 after rent and utilities, so Caitlin should take the job in her favorite locale.



Answer :

GinnyAnswer
To determine which job offers the best annual income considering the cost of living in each locale, let's go through a step-by-step analysis using the given information.

### Details Provided

1. Job 1: Albuquerque, NM
- Salary: \[tex]$54,000 annually - Average Monthly Rent & Utilities: \$[/tex]2,500

2. Job 2: Ann-Arbor, MI
- Salary: \[tex]$61,000 annually - No specific information on rent and utilities provided ### Calculations 1. Annual Rent & Utilities for Job 1: - Monthly rent and utilities: \$[/tex]2,500
- Convert to annual: [tex]\( \$2,500 \times 12 = \$30,000 \)[/tex]

2. Annual Rent & Utilities for Job 2:
- No specific rent and utilities costs provided, so we'll assume it is 0 for the calculation.

3. Annual Income After Rent & Utilities:

Job 1:
- Salary: \[tex]$54,000 - Rent & Utilities: \$[/tex]30,000 annually
- Annual income after rent & utilities: [tex]\( \$54,000 - \$30,000 = \$24,000 \)[/tex]

Job 2:
- Salary: \[tex]$61,000 - Rent & Utilities: \$[/tex]0 annually
- Annual income after rent & utilities: [tex]\( \$61,000 - \$0 = \$61,000 \)[/tex]

4. Compare the Annual Incomes:
- Job 1: \[tex]$24,000 - Job 2: \$[/tex]61,000

The difference in annual income is [tex]\( \$61,000 - \$24,000 = \$37,000 \)[/tex].

Based on these calculations, Job 2 in Ann-Arbor, MI offers a significantly higher annual income after accounting for rent and utilities: \$37,000 more than Job 1 in Albuquerque, NM.

Thus, the best choice for Caitlin considering the income after rent and utilities is Job 2 in Ann-Arbor, MI.

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