Assume Kelly just graduated from college and got three job offers with the following salaries, locations, and cost of living indexes.

Location	Cost of living index	Annual salary
Boston	132	$90,000
Nashville	88	$75,000
Seattle	111	$80,000

Just based on financial considerations, which offer should Kelly take? Show the necessary calculations.

Solutions

Expert Solution

Annual Salary per unit of Cost index

Boston = 90000 / 132 = 681.82

Nashville = 75000 / 88 = 852.27

Seattle = 80000 / 111 = 727.73

Nashville should be selected as it gives best value per unit of cost index.

jeff jeffy answered 2 years ago

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