Brad Edwards is earning $74,000 a year in a city located in the Midwest. He is interviewing for a position in a city with a cost of living 10 percent higher than where he currently lives. What is the minimum salary Brad would need at his new job to maintain the same standard of living?

Question

Business

Isabela Hensley

11 August, 07:37

Brad Edwards is earning $74,000 a year in a city located in the Midwest. He is interviewing for a position in a city with a cost of living 10 percent higher than where he currently lives. What is the minimum salary Brad would need at his new job to maintain the same standard of living?

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Answers (1)

Know the Answer?

Paige Rosales · Answer 1

The correct answer is $81,400.

Explanation:

According to the scenario, the given data are as follows:

Current earning = $74,000

As Brad is searching for a city which is 10% higher than current city then to maintain same living he has to earn 10% more than he earns.

So, total earning needed = $74,000 + 10% of $74,000

= $74,000 + $7,400

= $81400

Hence, the total earning brad needed is $81,400.