From the January 2016 Common Core Algebra I Regents
 Put 1300(1.02)^7 into the TI-84, it will come out to more than 1300!!
The money is growing  and also since 1.02 >1, the money is increasing.

So it has to be growth which is either answer 2 or 4
The exponential growth formula given on the Regents reference sheet is way complicated.
Here is a much much better one:

In our equation A = 1300 (1.02)^7
1300 is the principal or starting amount and the time = 7
The number in the parentheses is (1.02) which is equal to (1 + r)
Therefore r = .02 which is 2 cents or 2%
Now look at answers (2) and (4)
Notice that .02% growth would have the decimal .0002 as r and this is not the case.