The correct answer is D. Its value will increase by 12%.
The given function A(t) = 1,050(1.12) represents the value of the antique chair after t years, where 1.12 is the annual growth rate as a decimal.
When you simplify the function, it becomes A(t) = 1,176. Therefore, the chair's value increases by $126 every year (1,176 - 1,050).
Since the annual growth rate is 1.12 or 12% as a percentage, the chair's value will increase by 12% every year.