The equation you provided is in the form of exponential decay:
\[ y = 4,060(1 - 0.05)^t \]
In this equation, \( 0.05 \) represents the decay factor. The term \( (1 - 0.05) \) indicates that the population decreases by 5% each time period \( t \).
So, the correct interpretation of the rate of decay is:
- The decay rate is 5%, which means the population of the species decreases by 5% per time period.
Therefore, the correct option is:
Option #3: The rate of decay is 5%.