Final answer:
The second job offer has the better overall pay structure by $7,680.
Step-by-step explanation:
In order to determine which job offer has the better overall pay structure, we need to calculate the total value of each offer after 4 years. Let's start with the first offer:
- Yearly salary: $57,000
- 401k contribution: 8% of $57,000 = $4,560
- Matching contribution: 8% of $57,000 = $4,560
- Total value after 4 years: $57,000 + $4,560 + $4,560 = $66,120
Now let's calculate the total value of the second offer:
- Yearly salary: $63,000
- 401k contribution: 4% of $63,000 = $2,520
- Matching contribution: 4% of $63,000 = $2,520
- Total value after 4 years: $63,000 + $2,520 + $2,520 = $68,040
Therefore, the second job offer has the better overall pay structure by $7,680 ($68,040 - $66,120).