Paul works for a government agency in southern California making $65,000 per year. He is now being transferred to a branch office in Tennessee. The salary reduction associated with this transfer is 12%. Paul is not insulted by this reduction in pay and accepts his new location and salary gladly. He researched that the cost of living index in California is 132 whereas the cost of living Tennessee is 96. Over the next five years, what is the FW of Paul's extra income/improved life style (through the reduced cost of living) from having made this move? Paul's MARR is 10% per year ( Click the icon to view the interest and annuity table for discrete compounding when / 10% per year. The FW of Paul's extra income/improved life style is (Round to the nearest dollar)

Paul works for a government agency in southern California making $65,000 per year. He is now being transferred to a branch office in Tennessee. The salary reduction associated with this transfer is 12%. Paul is not insulted by this reduction in pay and accepts his new location and salary gladly. He researched that the cost of living index in California is 132 whereas the cost of living Tennessee is 96. Over the next five years, what is the FW of Paul's extra income/improved life style (through the reduced cost of living) from having made this move? Paul's MARR is 10% per year ( Click the icon to view the interest and annuity table for discrete compounding when / 10% per year. The FW of Paul's extra income/improved life style is (Round to the nearest dollar)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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