1. Can you help Sammy decide whether she want to switch job from Long Island to New York City? (a) (b) Sammy is a 50 years old barista who currently works in a coffee shop at Stony Brook with $31], 000 dollar total earnings every year. Today she got a new offer to work in the New York City at a newly opened coffee shop as a manager who are promised to get 40, 000 dollar total earning per year. Assuming Sammy will continue working until 60 years old. The annual expense of living around Stony Brook is about $14, ODD, and $18, DOD for New York. If you were to decide for Sammy today. Do you think Sammy should move to New York and take the job? (Given the interest rate is 1%) If your answer is yes, then how much raise does the the coffee shop at Stony Brook should give to Sammy in order to keep her? If you answer is no, then how much money does the coffee at new york should increase in their offer in order to get Sammy to work for them? (e) In another scenario. If Sammy were to commute from Stony Brook to New York, where the train fair is around $5, 000 a year. Ifwe were to decide today, do you think Sammy should commute to work in New York and give up her job at Stony Brook? (Given the interest rate is also 1%) (d) What if today the interest rate is 0? Would you make the same conclusion as (a)? (e) What if today, the interest rate is I]? Would you make the same conclusion as (c)? (f) Please explain how interest rate might affect your decisions