A = Pert is formula for continuously compounded interest A = final amount = 2000 P = principal = 1000 e = euler's number (on calculator) r = interest rate as decimal = .075 t = time in years
Your mistake is that 7.5% as a decimal is 7.5/100 = .075 not 7.5
2000 = 1000e.075t
e.075t = 2000/1000 e.075t = 2 take natural log of both sides ln e.075t = ln 2 .075t = ln 2 t = ln2/.075 t = 9.24 years
