Use the provided information below to identify each of Mr. Nicholson’s earning opportunities as arithmetic or geometric. For each opportunity, include the common difference or ratio. In your final answer, use complete sentences to explain how you identified each opportunity as arithmetic or geometric.

Mr. Nicholson accepts a job that pays an annual salary of $60,000. In his employment contract, he is given the option of choosing a) an annual raise of $3,500 or b) an annual raise of 5% of his current salary.