Answer: 120*1.12
The multiplier 1.12 represents the idea of increasing by 12%
This is because 100% + 12% = 1 + 0.12 = 1.12
For example, if you spend $100 this week and increase that by 12%, then you'll spend 100*1.12 = 112 dollars next week. Note how 12% of 100 is 12, which is the amount the budget goes up.