In 2014, Jill, age 35, received a job offer with two alternative compensation packages to choose from. The first package offers her $117,500 annual salary with no qualified fringe benefits, requires her to pay $3,900 a year for parking, and will purchase life insurance at a cost of $2,250. The second package offers $107,500 annual salary, employer-provided health insurance, annual free parking (worth $345 per month), $212,000 of life insurance (purchasing on her own would have been $2,250 annually), and free flight benefits (she figures that it will save her $6,400 per year). If Jill chooses the first package, she would purchase health and life insurance benefits at $5,050 and $2,250, respectively, annually after taxes and spend another $6,400 in flights while traveling. Assume her marginal tax rate is 28 percent.
How much would she benefit in after-tax dollars by choosing package 2 instead of the other compensation package?