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flippinhailey
20.07.2019 •
Mathematics
Frank is trying to decide between two job offers. the compensation package for job a includes a $450-per-month health insurance plan, to which frank would contribute $85; a $45-per-month life insurance plan; a salary of $67,000 per year; and a 6% match on 401(k) contributions. the compensation package for job b includes a $500-per-month health insurance plan, to which frank would contribute $115; a $40-per-month life insurance plan; a salary of $65,000 per year; and an 8% match on 401(k) contributions. frank plans to contribute $8000 per year to his 401(k) plan. (10 points: part i – 2 points; part ii – 2 points; part iii – 2 points; part iv – 3 points; part v – 1 point) part i: what is the yearly value of the health insurance benefit from job a? how about the yearly value of the health insurance benefit from job b? (2 points) part ii: what is the yearly value of the life insurance benefit from job a? how about the yearly value of the life insurance benefit from job b? (2 points) what is the yearly value of the 401(k) match from job a? how about the yearly value of the 401(k) match from job b?
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answer:
by multiplying each ratio by the second number of the other ratio, you can determine if they are equivalent. multiply both numbers in the first ratio by the second number of the second ratio. for example, if the ratios are 3: 5 and 9: 15, multiply 3 by 15 and 5 by 15 to get 45: 75.