Question

Marla Opper currently earns $50,000 a year and is offered a job in another city for $56,000. The city she would move to has 8 percent higher living expenses than her current city.(a) What amount must Marla earn in the new city to maintain her current buying power?(b) If Marla accepts the new job, will her buying power increase?

Answer 1

Answer:

a) What amount must Marla earn in the new city to maintain her current buying power?

$54000

If Marla accepts the new job, will her buying power increase?

Yes increase in $2000

Explanation:

Earn Offer

50000 56000

8%  

4000  

54000 56000

           2000