Question

Caitlin has finished her schooling and training to be a dental hygienist. She has two job offers that she is considering.

Caitlin’s Job Offer Comparison

Job 1: Albuquerque, NM
Job 2: Ann-Arbor, MI
Salary
$54,000
$61,000

Benefits
$2,500 bonuses,
health insurance,
401K
Health insurance,
401K
Average Monthly Rent & Utilities
$925
$1,300

Which job would offer the best annual income considering the cost of living in each locale?
Job 2 is a better choice because the annual income after rent and utilities is $59,700 but that of job 1 is $55,575.
Job 2 is a better choice because the annual income after rent and utilities is $45,400 but the income for job 1 is $41,900.
Job 1 is a better choice because it costs $4,500 less per year to live there.
The jobs have equal annual incomes of $45,400 after rent and utilities so Caitlin should take the job in her favorite locale.

Answer 1

Calculate annual money left after rent/utilities (include Job 1 bonus):

Job 1: (54,000 + 2,500) − (925 × 12) = 56,500 − 11,100 = 45,400
Job 2: 61,000 − (1,300 × 12) = 61,000 − 15,600 = 45,400

They come out equal: $45,400 after rent and utilities. Since health insurance and 401(k) are offered by both, pick by non‑financial factors (location preference, career opportunities, commute, family, taxes, cost differences beyond rent, etc.).