Question

Susan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City’s Cost of Living Index is 100 and Indianapolis’ Cost of Living Index is 125, which is true?

Answer 1

She will be having more spending power if she resides in Kansas City.

Step-by-step explanation:

As Susan is presently working in the Kansas city where she is earning $30,000 annually but she has been offered a position where she have the opportunity for earning of $32,000 annually. But the Cost of living index in the new city is 125 which is 25 more than the Kansas city. Which states that if the earning power increases, its spending will also be increased.

So, it is better to stay in the Kansas city and she will be having more spending power, in this city.