Mr. Nihlen owns a house in town. The town assessor determines the value of Mr. Nihler's house each year.
The exponential function H(t) = 80 (1.04) models the relationship between the value, H, in thousands of dollars, of the house and the number of years, t, since Mr. Nihlen bought the house.
Which statement conectly interprets this model?

A. The value of the house increases by 1.04% each year.
B. The value of the house increases by 4% each year
C. The value of the house increases by $1,040 each year.
D. The value of the house increases by $4,000 each year.