Amy is analysing a job offer.
Amy’s Salary Analysis
Annual Salary
Benefits
Average Monthly Rent
How much should she expect to pay on rent and utilities each year?
a.
b.
c.
d.
The Correct Answer and Explanation is:
To provide the correct answer and a 300-word explanation, I need more specific data, especially:
- The amount of annual salary Amy is offered.
- The monthly rent amount (or average rent).
- Whether utilities are included in rent or estimated separately, and their cost if not included.
However, based on a common scenario where average monthly rent and utilities are standard percentages of income, I will provide a sample answer using a typical assumption and explain the logic.
Sample Answer:
Answer: b. $18,000
Explanation
When analyzing a job offer, understanding the cost of living—particularly housing and utilities—is crucial. Let’s assume Amy’s average monthly rent is $1,200, and her monthly utilities (electricity, water, internet, etc.) are around $300. That gives a total housing cost of $1,500 per month.
To calculate Amy’s annual rent and utilities, we multiply: $1,500×12=$18,000\$1,500 \times 12 = \$18,000
So, Amy should expect to pay about $18,000 per year on rent and utilities combined.
This amount represents a significant portion of her expenses. A common financial guideline recommends spending no more than 30% of your gross monthly income on housing. Using this rule, if Amy is paying $1,500/month, her gross monthly salary should be at least: $1,500÷0.30=$5,000 per month\$1,500 \div 0.30 = \$5,000 \text{ per month}
That equates to a minimum annual salary of $60,000 to afford this rent comfortably. If her salary is much lower, the rent may be unaffordable without cutting back on other essential expenses or living in a less expensive area.
Utilities should also be factored in carefully, as costs can vary by season and region. Winter heating and summer air conditioning can raise bills significantly, especially in older or inefficient buildings.
Therefore, understanding both fixed (rent) and variable (utilities) costs helps Amy make a better-informed decision about accepting a job offer and relocating.
If you provide the actual numbers listed under Annual Salary, Benefits, and Average Monthly Rent, I can give you the exact answer instead of a sample.
