To calculate the total amount Darryl will have in his account after 10 years with simple interest, we use the simple interest formula:

$A = P + I$ Where:

• $A$ = Total amount in the account
• $P$ = Principal amount = $1,500
• $I$ = Interest earned = $P \times r \times t$

Step-by-Step Solution:

1. Identify the given values:

   • $P = 1,500$
   • $r = 2.7\% = 0.027$
   • $t = 10 \, \text{years}$

2. Calculate the interest: $I = P \times r \times t$ Substituting the values: $I = 1,500 \times 0.027 \times 10$ $I = 405$

3. Find the total amount: $A = P + I = 1,500 + 405 = 1,905$

Final Answer:

Darryl will have $1,905 in his account after 10 years.

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Would you like a detailed breakdown of simple vs. compound interest or another example?

Related Questions:

1. How does compound interest differ from simple interest in long-term growth?
2. What if Darryl made annual deposits instead of a single deposit? How would the total change?
3. How can one calculate the future value if the interest rate or time changes?
4. What happens if the interest rate compounds annually instead of being simple?
5. How would the total amount differ if Darryl deposited $2,000 instead?

Tip:

When dealing with simple interest, remember the interest earned is linear, not exponential, which makes calculations straightforward but less advantageous for long-term growth.