Question

Financial aspects of employment

Wang Min and Roger are friends from college and both have received offers for entry level positions at a San Francisco corporation in their related fields. Wang Min and Roger would like to room together in San Francisco.

Consider Wang Min and Roger’s personal situations, assuming the city indices are:

Boston:	151
San Francisco:	135
Cleveland:	99

Consider the following scenarios and answer the questions that follow.

Note: Round your answers to the nearest whole dollar.

Wang Min

Wang Min is from Boston, where the cost of living is higher than it is in San Francisco. Wang Min’s parents are discouraging her from taking the position because they would like her to live at home for a while, find a job in the area, and save some money. Wang Min has already convinced her parents that she will live on her own even if she finds a job in Boston. Wang Min took a personal finance course and knows how to compare salaries in different cities. Wang Min has been offered $35,000 to work in San Francisco. (Note: Round your answers to the nearest whole dollar.)

A comparable offer in Boston would be

$________.

Roger

Roger is from Cleveland, where the cost of living is lower than it is in San Francisco. Roger’s parents are encouraging him to take the position because jobs are hard to come by in Cleveland and he will be able to get a good start to his career and save some money. Now, he wants to make sure that the offer in San Francisco is worth the move. Roger has been offered $30,000 to work in San Francisco. (Note: Round your answers to the nearest whole dollar.)

The equivalent salary in Cleveland is

$________.

Answer 1