What is the growth factor that corresponds to a product that increases its value first by 2%, and then increases by 5% of its value, and finally increases by 12% of its value? Round to the tenths place.

Each percentage increase multiplies the value by a growth factor: 2% gives 1.02, 5% gives 1.05, and 12% gives 1.12. Multiply the factors because the increases happen one after another: 1.02 × 1.05 × 1.12 = 1.19952, which rounds to 1.2 (or 1.20). The correct choice is 1.20.

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