Question

Choose the proper rationale. “In the compound interest equation, time (the variable t) has the biggest effect on the outcome because...” a. Time is usually the largest number in the equation. b. Time uses the largest units (years are bigger than dollars or percentages). c. Time is an exponent while the other units are factors. d. Time is the independent variable.

Answer 1

I think the correct answer from the choices listed above is option C. In the compound interest equation, time (the variable t) has the biggest effect on the outcome because time is an exponent while the other units are factors. Hope this answers the question. 

Answer 2

The correct answer is:

c. Time is an exponent while the other units are factors.

Explanation:

In the compound interest formula, time is the exponent.

Since it is the exponent, this tells us how many times the base is multiplied by itself.  As such, it has a larger effect on the answer than any other piece of the equation.