Question

Job A offers you the following financial package: base salary of $35,000, 2 weeks paid vacation, full coverage health insurance worth $10,000, at no cost to you. Job B offers the following package: $40,000 base salary, full coverage health insurance for $110.00, deducted from your weekly paycheck, and 2 weeks paid vacation. Which job offers you the best financial advantage?

Answer 1

Answer:

The first one offers the best financial advantage

Explanation:

After reading carefully both offers, the first one does not imply any charges on the employee because both, health insurance and vacations, are full covered. On the other hand, when we analyze the second offer, despite the base salary is $5000 higher, the health insurance is deducted from the employee's pay check. Comparing both offers with numbers we have:

$Net Salary=Base salary-insurance-vacations\\First Offer= 35000-0-0 = 35000\\SecondOffer= 40000-110*52-0=34280$

Finally, we can conclude that the first offer has a $720 advantage over the second one. Therefore, it is better to choose it.