How large a salary would require in seattle

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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?

Reference no: EM133004365

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