Harry has started out fine in

Harry has started out fine in his career as his responsibilities have increased since he began working there about five years ago. Belinda recently attended a conference for those in her stock brokerage field and by chance she dropped in at the “career search” room. She saw job opportunities there that fit her skill set that offered salaries of $78,000 to $80,000 in nearby Parkville, Missouri, only about a 30-minute commute away.

(a) If a new employer offered Belinda $80,000 to move and the relative cost index for the new community was 116, how does that compare to her current salary of $77,000 in Kansas City assuming the index in the latter is 122?

(b) Do you think she should take the new job? Give three reasons why or why not?

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