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Liam is a computer systems analyst and is looking to change to a company that offers more opportunities for advancement. He has job offers from two companies that look promising.

\begin{tabular}{|c|c|c|}
\hline
\multicolumn{3}{|c|}{Liam's Job Offer Comparison} \\
\hline
& Job 1: Seattle, WA & Job 2: Silicon Valley, CA \\
\hline
Salary & \[tex]$78,000 & \$[/tex]100,000 \\
\hline
Benefits & \[tex]$4,000 bonuses, & \$[/tex]2,500 bonuses, \\
& health insurance & health insurance \\
\hline
Average Monthly Rent & \[tex]$1,500 & \$[/tex]3,000 \\
\hline
\end{tabular}

Which company is a better choice based on annual income after housing and utility costs?

A. Job 2 is a better choice because it will have a salary and benefits worth \[tex]$20,500 more than Job 1.

B. Job 2 is a better choice because the annual income after housing is expected to be \$[/tex]140,300 but Job 1 is expected to be \[tex]$98,200.

C. Job 1 is a better choice because the annual income after housing is \$[/tex]65,800 but that of Job 2 is \$64,700.



Answer :

GinnyAnswer
Let's analyze the comparison step-by-step to determine which job offer is better based on the annual income after housing and utility costs.

### Job 1: Seattle, WA
1. Salary: [tex]$78,000 2. Benefits: $[/tex]4,000
3. Average Monthly Rent & Utilities: [tex]$1,000 4. Annual Rent & Utilities: - Monthly: $[/tex]1,000
- Annual: [tex]$1,000 * 12 = $[/tex]12,000
5. Total Income (Salary + Benefits):
- [tex]$78,000 (salary) + $[/tex]4,000 (benefits) = [tex]$82,000 6. Net Income (Total Income - Annual Rent & Utilities): - $[/tex]82,000 (total income) - [tex]$12,000 (annual rent & utilities) = $[/tex]70,000

### Job 2: Silicon Valley, CA
1. Salary: [tex]$100,000 2. Benefits: $[/tex]2,500
3. Average Monthly Rent & Utilities: 401 K (or approximately [tex]$33,416.67 per month as $[/tex]401,000 / 12)
4. Annual Rent & Utilities:
- Monthly: approximately [tex]$33,416.67 - Annual: $[/tex]33,416.67 * 12 = [tex]$401,000 5. Total Income (Salary + Benefits): - $[/tex]100,000 (salary) + [tex]$2,500 (benefits) = $[/tex]102,500
6. Net Income (Total Income - Annual Rent & Utilities):
- [tex]$102,500 (total income) - $[/tex]401,000 (annual rent & utilities) = -[tex]$298,500 ### Conclusion: 1. Job 1: Seattle, WA - Annual Income After Housing and Utilities: $[/tex]70,000
2. Job 2: Silicon Valley, CA
- Annual Income After Housing and Utilities: -$298,500

Based on the net income after housing and utility costs, Job 1 in Seattle, WA is a significantly better choice. Despite the higher salary and benefits offered by Job 2 in Silicon Valley, CA, the excessively high cost of housing and utilities results in a substantial negative net income. Therefore, Job 1 offers a more favorable financial outcome.

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