- Identify the components of annual income: salary (\(\$48,500\)), 401K match (\(\$2,500\)), and bonuses (\(\$5,000\)).
- Exclude personal living expenses like rent and utilities as they are not part of the income.
- Calculate the total by summing the components: \(\$48,500 + \$2,500 + \$5,000 = \$56,000\).
- Select the option corresponding to the final calculated amount: \(\boxed{\$56,000}\).
Explanation
- Analyzing Income Components
To determine Amy's total income with benefits, we need to identify the components that contribute to her annual compensation package. According to the data, these components are:
- Annual Salary: \(\$48,500\)
- 401K Match: \(\$2,500\)
- Bonuses: \(\$5,000\)
The average monthly rent of \(\$1,100\) and average monthly utility costs of \(\$200\) are personal expenses, not forms of income, so they are excluded from the calculation.
- Calculating Total Income
The total annual income with benefits is calculated by summing the annual salary and all additional benefits offered by the employer. The formula is:
\[\text{Total Income} = \text{Annual Salary} + \text{401K Match} + \text{Bonuses}\]
Substituting the given values:
\[\text{Total Income} = \$48,500 + \$2,500 + \$5,000\]
- Final Calculation and Comparison
Now, perform the arithmetic:
\[\$48,500 + \$2,500 = \$51,000\]
\[\$51,000 + \$5,000 = \$56,000\]
Thus, Amy's total annual income with benefits is \(\$56,000\). Comparing this to the provided options, we see that it corresponds to the fourth choice.
Examples
Understanding how to calculate total compensation is a vital skill for anyone evaluating job offers. Beyond just the base salary, factors like bonuses, retirement contributions, and insurance benefits can significantly impact the true value of a position. By learning to aggregate these figures, you can make informed decisions when comparing different career opportunities, ensuring you account for the complete financial package rather than just the base paycheck.