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21 August, 22:20

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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  1. 21 August, 22:46
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    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.
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