Kay is trying to decide between two job offers. The compensation package for job A includes 80% of the cost of a $300-per-month health insurance plan, 90% of the cost of a $40-per-month life insurance plan, a salary of $65,000 per year, and a 5% match on 401(k) contributions. The compensation package for job B includes 70% of the cost of a $400-per-month health insurance plan, 80% of the cost of a $50-per-month life insurance plan, a salary of $64,000 per year, and a 10% match on 401(k) contributions. Kay plans to contribute $8000 per year to her 401(k) plan.
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?
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?
Part III: 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?