Answer:
True
Step-by-step explanation:
Each year, the population of the town increases by a rate of 4%, or 0.04.
In order to find the answer, you need to multiply the population of that year by 1.04. 1.04 is used in order to add the 4% to the overall total.
At the end of the first year, the population is 3250. (<em>3125 x 1.04)</em>
At the end of the second year, the population is 3380. (<em>3250 x 1.04)</em>