Determine Whether the Statement Is True or False

Multiple Choice

Determine whether the statement is true or false. ​
Susan's salary increased from $40,000/year to $50,000/year over a 4-year period. Therefore, Susan got annual increases of 4% over that period.
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A) True. This follows from formula A = P(1 + rt) .
B) False. If Susan had gotten annual increases of 4 percent over 4 years, her salary would have been , or approximately $46,794.34 after 4 years, not $50,000.
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