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.

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.

Question

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.
​
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. ​

Quizplus · Accepted Answer

If Susan had received annual increases of 4%, her salary would have increased to approximately $46,794.34 after 4 years, which is less than $50,000. Therefore, the statement is false.

Determine Whether the Statement Is True or False