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Nyla would have earned $60,000 a year as a Business Analyst at Amazon in Baltimore, Maryland. She can earn $5,000 more if she moves to Amazon's headquarter in Seattle, Washington. The city of Seattle has comparatively a 14.52 point higher cost of living than Baltimore, where the cost-of-living index is 70. Problem 1: Provide two factors Nyla should consider before moving to Seattle.
Problem 2: In Seattle, Washington, Nyla would be eligible for a nontaxable life insurance benefit with an annual premium of $6000 paid entirely by Amazon. Assuming Nyla is in a 10% tax bracket, how much would she have to earn to pay for this benefit with after-tax dollars?
Problem 3: How large a salary would she require in Seattle, Washington to maintain her standard of living or buying power in Baltimore, Maryland?
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