1 In the process of considering two job offers, Jill Saunders wants to determine which position would have the higher monetary value. Job 1 has a salary of $42,500 with $4,800 of nontaxable employee benefits. Job 2 has a salary of $38,750 and $8,300 of nontaxable benefits. Use a 25 percent tax rate.

2. James Horton is planning to go to graduate school in a year. The program of study will take four years. James wants to have $10,000 available at the start of each year for various school and living expenses. If he earns 5 percent on his money, how much must he deposit today to be able to withdraw $10,000 a year for four years?

3. In the mid-1990s, selected automobiles had an average cost of $18,000. Ten years later, the average cost of those same motor vehicles is now $29,300. What was the annual rate of increase in the price of the car.?

4. Linda Lopez deposits $2,500 a year into her retirement account. If these funds have an average earning of 7 percent over the 40 years until her retirement, what will be the value of her retirement account?

5 Brad Gilbert is earning $45,000 a year in a city located in the central area of the country with the cost of living index of 125. He is interviewing for a position that is in a city that has a cost of living index is 140. What would be the minimum salary he would need at his new job to maintain the same standard of living?