Question

Formulas for Comparing Salaries and Buying Power by City The area that you chose to live and work in will have an important impact on your income. The cost of living in a city, for example, would be higher than living in a rural area, and cities' costs vary across the country. City indices can be found on the Internet to compare salaries and buying power. Fill in the formula for comparing salaries by city Equivalent Salary in City 2- x Salary in City 1 Fill in the formula for comparing buying power by city: Equivalent Buying Power in City 1 x Buying Power in City 2 Think about whether your answer makes sense. If you are converting a salary from a high index city to a low index city, the salary would be high index city, you would expect your converted salary to be in the low index city. And if you are comparing a salary in a low index city to a in the high index city. If you are converting buying power, the buying power in a high index city will be less than the buying power in a low index city. For example, $1,000 in Atlanta, where the city index is 103, would purchase an equivalent amount of goods and services as whole dollar in sn rancaco here durnwer tothe nearest

Answer 1

Salary in city 2=buying power in city 1/buying power (index) in city 2*salary in city 1 or cost of living index in city 2/cost of living index in city 1*salary in city 1

Buying power in city 1=Cost of goods and services in city 2/cost of goods and services in city 1*buying power in city 2 or Cost of living index in city 2/Cost of living index in city 1*buying power in city 2

Low

Higher

1311