Choice B is the correct answer. Subtract rate from 1.

1. Identify Rate: $r = 1.2\% = 0.012$.
2. Calculate Factor: $b = 1 - 0.012 = 0.988$.

💡 Strategic Tip:$1.000 - 0.012 = 0.988$.

Choice A is incorrect because it subtracts 0.12 (12%). Choice C is incorrect because it represents growth.