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Unformatted text preview: arolina is
97.70 % of the average cost-of-living in the United States." In other words, the average 8 cost of living in live in South Carolina is slightly more than the average cost of living in
North Carolina. Now, take a look at the cost of living in Connecticut, New York, and
New Jersey. Assume you live there and you are getting ready to retire. Where would
you move to make your retirement income spend farther? Would North Carolina or
South Carolina make your retirement dollars go farther? Now do you understand why so
many folks from up north move from “up their” to “down here”? Simple economics!
Well, maybe the weather helps too.
ii) Let's assume that your income is $22,000 in South Carolina. What level of income in
North Carolina would give you the same level of purchasing power as in South Carolina?
An income of $22,000 in South Carolina is equivalent to an income of $21,819.86 in
North Carolina. How did we figure that out?
We would have to have a North Carolina Income of
$22,000 x (96.90 / 97.70) = $21,819.86 South Carolina income N.C. Cost-ofLiving Index S.C. Cost-ofLiving Index to have the same purchasing power that a $22,000 income in South Carolina would
provide. In general,
The Level of Income Needed
in State X to Obtain the Same
Level of Purchasing Power as
in State Y
= (Income in State Y) x Cost of Living Index for State X
Cost of Living Index for State Y Or another way to look at it is to think in terms of moving from...
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This lab report was uploaded on 02/19/2014 for the course ARE 201 taught by Professor Eryuruk during the Spring '08 term at N.C. State.
- Spring '08