A teacher put this problem up the other day and I'm confused about how he got to the answer. Can you explain it to me?
Job $X$ provides $20$ vacation days and $143,000$ euro annual salary.
Job $Y$ provides $16$ vacation days and $145,400$ euro annual salary.
The question asks: what salary would $Y$ need to proved to make a rational agent indifferent to the the two options.
He said the answer is $155,000$ euro.
I approached this a few different ways. One was to calculate how much $X$ paid per day $(143000/(260-20))=595.8$ [$260$ business days/year, less the vacation time]. Since $Y$ provides four less days, they would need to compensate an additional $4*595.8$ = $2,400$. Thus, $143,000 + 2,400 = 145,400$ which is the given salary of $Y$. I'm not sure why I need to add $4*2,400$ to $145,400$ for $Y$'s salary to break even with $X$.