Question

Luke Anderson is earning $48,000 a year in a city located in the Midwest. He is interviewing for a position in a city with a cost of living 12 percent higher than where he currently lives. What is the minimum salary Luke would need at his new job to maintain the same standard of living?

Answer 1

The minimum requirement of salary = $53760

Explanation:

Cost of living in city is 12 percent higher than where Luke Anderson lives. So, Luke Anderson will require 12 percent higher salary than existing salary in order to maintain the existing standard of living

The calculations are as follows.

Current salary of Luke Anderson = $48000

12 percent increase = 48000 multiply with 12 percent = 5760

Thus, the required minimum salary = 48000+ 5760 = 53760

So, Luke Anderson will require minimum salary of $53760