The value of a $120,000 house increases by 1.3% per year. A. Exponential Growth
B. Exponential Decay
C. This is a Linear situation.

a. exponential growth

Step-by-step explanation:

the equation is y = 120000(1.03)^x

f(x)=a(1+r)^{x}

the answer is:

the correct option:

b.

to solve the problem, we need to remember how to operate to simplify exponential expressions using the logarithms.

we are given the equation:

then, using placing logarith with base 7 on both sides of the equation, we have:

so, rounding the obtained result to two decimal places (nearest hundreth), we have:

hence, we have that the correct option:

b.

have a nice day!