The average annual cost of living in Illinois, California, and Oregon are displayed in the table below: State Illinois California Oregon Average Annual Cost of Living $58,000 $70,000 $64,000 Suppose you are earning a salary of $80,000 per year in Oregon. Your employer asks you to transfer to the California office. Based on the average annual cost of living, what is the lowest possible salary you will accept? Round your answer to the nearest whole dollar. Explain your reasons.

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Chapter2: Second-order Linear Odes
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The average annual cost of living in Illinois, California, and Oregon are displayed in
the table below:
Average Annual Cost of
Living
State
llinois
$58,000
California
$70,000
Oregon
$64,000
Suppose you are earning a salary of $80,000 per year in Oregon. Your employer asks
you to transfer to the California office. Based on the average annual cost of living,
what is the lowest possible salary you will accept? Round your answer to the nearest
whole dollar. Explain your reasons.
Transcribed Image Text:The average annual cost of living in Illinois, California, and Oregon are displayed in the table below: Average Annual Cost of Living State llinois $58,000 California $70,000 Oregon $64,000 Suppose you are earning a salary of $80,000 per year in Oregon. Your employer asks you to transfer to the California office. Based on the average annual cost of living, what is the lowest possible salary you will accept? Round your answer to the nearest whole dollar. Explain your reasons.
Expert Solution
Step 1

Given that the average cost of living in Illinois, California and Oregon is:

State Average annual cost of living
Illinois $58000
California $70000
Oregon $64000

The annual cost of living in Oregon city is $64,000. and the earning is $80,000 per year.

Hence percentage of annual cost of living from the total earning is given by

Percentage of annual cost=6400080000×100=80%

Hence the total percentage of cost of living is 80%.

Therefore saving percentage is 20%.

Hence there should be minimum 20% for savings.

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