If the antique's value increases over time, it must be growing (not decaying) in value.
We're told the value increases by 12.12%, which means that if the current value is [tex]x[/tex], then the value after 1 year is [tex]x+0.1212x=1.1212x[/tex]. Each year, the value increases by the same factor, which means after 2 years, the value is [tex]1.1212(1.1212x)=1.1212^2x[/tex]; after 3 years, the value is [tex]1.1212^3x[/tex]; and so on.
Here [tex]x[/tex] is the starting value of the antique. So the answer is the second choice.
