Question

Which statement gives a correct interpretation

Answer 1

Expression A:
0.96-1=-0.04=-0.04*100%=-4% decays (negative) at a rate of 4% every four months

Expression B:
1.18-1=0.18*100%=18% grows (positive) at a rate of 18% every three years

Answer: Third option:  Expression A decays at a rate of 4% every four months, while expression B grows at a rate of 18% every three years

Answer 2

Expression A = (18500)(0.96)^3t, implying that at t = 1/3 years = 4 months, the exponent will be 1, meaning that the value will be multiplied by 0.96 (which is a decrease of 4%). This fits the third choice.
Expression B has a factor of (1.18)^t/3, implying that at t = 3 years, the exponent will be 1, meaning that the value is multiplied by 1.18, which is a growth of 18%. This also fits the third choice.