Hillary’s family is thinking of relocating to a different city to save money. They set up a budget comparing the cost of living in four cities. Oakland Phoenix Santa Fe San Diego Item Cost Cost Cost Cost Housing $565 $465 $505 $1200 Food $545 $495 $475 $655 Health Care $245 $215 $200 $495 Taxes $450 $415 $385 $625 Other Necessities $350 $305 $295 $495 Monthly Total $2155 $1895 $1860 $3470 Based on cost of living alone, which city should they choose to live in? Oakland Phoenix Santa Fe San Diego
Answer:
Santa Fe has the lowest cost of living.
Step-by-step explanation:
Total cost for Oakland = $2155
Total cost for Phoenix = $1895
Total cost for Santa Fe = $1860
Total cost for San Diego = $3470
The cost of living is defined as the amount of money a person needs to sustain his living by affording basic expenses like housing, food, taxes, and healthcare.
Other necessities can be secondary, so subtracting the values of these from total cost we get,
Cost of living in Oakland = 2155 - 350 = $1805
Cost of living in Phoenix = 1895 - 305 = $1590
Cost of living in Santa Fe = 1860 - 295 = 1565
Cost of living in San Diego = 3470 - 495 = $2975
Hence, comparing all the costs, Santa Fe has the lowest cost of living.