Salary offered = $55,000 per year
Tax rate in Tennessee = 6%
Tax rate in Pennsylvania = 3.07%
So, Tax per year in Tennessee
=10055,000∗6=$3,300
Tax per year in Pennsylvania
=10055,000∗3.07=$1,688.5
So, if you accept the position in Pennsylvania then tax savings per year would be
= Tax per year in Tennessee - Tax per year in Pennsylvania
=$3,300−$1,688.5=$1,611.5
So, the tax savings per year would be $1,611.5 for 10 years.
Now using Future worth (FW)/Annuity (A)relation-
FW=rA[(1+r)n−1]FW=0.11611.5[(1+0.1)10−1]FW=16115∗1.5937FW=$25682
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