Amy is analyzing a job offer. Amy’s Salary Analysis Annual Salary Benefits Average Monthly Rent Average Monthly Utility Costs
2,500 per year
1,100 $200 How much income with benefits can she expect
The Correct Answer and Explanation is:
To determine Amy’s income with benefits, we need to add her annual salary and the value of her benefits.
Step-by-step Calculation:
- Annual Salary: $2,500
- Annual Benefits: $1,100
Total Income with Benefits = $2,500 + $1,100 = $3,600 per year
Explanation:
Amy is analyzing a job offer that outlines her potential annual salary and the value of additional benefits. When considering a job offer, it’s important not only to look at the salary but also to include the value of non-cash benefits such as health insurance, retirement contributions, or other perks provided by the employer. These benefits have a real financial value and contribute to the total compensation.
In Amy’s case, her annual salary is $2,500, and the value of her annual benefits is $1,100. To find her total annual income with benefits, we simply add these two figures together:Total Annual Compensation=Salary+Benefits=2,500+1,100=3,600\text{Total Annual Compensation} = \text{Salary} + \text{Benefits} = 2,500 + 1,100 = 3,600Total Annual Compensation=Salary+Benefits=2,500+1,100=3,600
So, Amy can expect to receive $3,600 per year in total compensation.
However, understanding whether this job offer is livable or financially sustainable for Amy requires considering her cost of living as well. According to the information, Amy’s average monthly rent is $200, and her average monthly utility costs are also $200. That means her total monthly living expenses are:Monthly Expenses=200+200=400\text{Monthly Expenses} = 200 + 200 = 400Monthly Expenses=200+200=400Annual Expenses=400×12=4,800\text{Annual Expenses} = 400 \times 12 = 4,800Annual Expenses=400×12=4,800
Her total annual compensation ($3,600) is less than her annual living expenses ($4,800), indicating that this job may not be financially sufficient for Amy without additional income sources or financial support. This highlights the importance of balancing salary, benefits, and cost of living when evaluating a job offer.
