The salary of the vice president of the ShoeTunes corporatio

The salary of the vice president of the ShoeTunes corporation is given by P(t) = 50000 middot (1.04)\', where P is measured in dollars, and t is the number of years since she was hired. Which of the following statements is true? Her salary increases by $50,000 every year. Her salary next year will increase by 4% compared to her salary this year. Her salary increases by $2,000 every year. She will be receiving a 104% raise each year. Her salary next year will be 4% of her salary

Solution

Since the instruction of first problem is not mentioned here, I am solving the #2 for you.

P(t) = 50000 (1.04)^t = 50000 (1+0.04)^t = P (1+r)^t

Here r =0.04

So rate of increase = 0.04 * 100 = 4%

So her salary increase 4% per year.

It means her salary next yeat will increase by 4% compared to her salary next year.

So the answer is option \'b\'.