Paul works for a government agency in southern California making $70,000 per year. He is now being transferred to a branch office in Tennessee. The salary reduction associated with this transfer is 11%. 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 index in Tennessee is 95. Over the next five years, what is the FW of Paul’s extra income/improved life style (through the reduced cost of living) fromhavingmade this move? Paul’s MARR is 10% per year (im).
Paul works for a government agency in southern California making $70,000 per year. He is now being transferred to a branch office in Tennessee. The salary reduction associated with this transfer is 11%. 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 index in Tennessee is 95. Over the next five years, what is the FW of Paul’s extra income/improved life style (through the reduced cost of living) fromhavingmade this move? Paul’s MARR is 10% per year (im).
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Paul works for a government agency in southern California making $70,000 per year. He is now being transferred to a branch office in Tennessee. The salary reduction associated with this transfer is 11%. 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 index in Tennessee is 95. Over the next five years, what is the FW of Paul’s extra income/improved life style (through the reduced cost of living) fromhavingmade this move? Paul’s MARR is 10% per year (im).
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