If Jack’s and Kate’s annual salaries in 1985 were each 10 percent higher than their respective annual salaries in 1984,

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If Jack’s and Kate’s annual salaries in 1985 were each 10 percent higher than their respective annual salaries in 1984, what was Jack’s annual salary in 1984?

(1) The sum of Jack’s and Kate’s annual salaries in 1984 was $50,000.

(2) The sum of Jack’s and Kate’s annual salaries in 1985 was $55,000.

Answer: E

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