Simple Interest

[Rashim Wingate]

This is a question I had on a homework assignment but I couldn't find out how to solve it. I found a simple interest calculator and put in the data from the problem and got the answer. But I need to know how to actually solve the problem. So here is the question:

You need a new car, your ultimate wish would be to buy a Hummer SUV but you are being more practical and considering a Hyundai SUV. The Hummer SUV retails for $41,705.00 while the Hyundai SUV sells for $21,829.00. If you take a car loan out for 3.15% for five years, what will the total cost for each vehicle cost?

I have tried the simple interest formula I=prt, but I still can't get the correct answer.

 

[mmm4444bot]

I = prt is a formula for the interest only. After you calculated the interest (I), did you add it to the principal (p)?

Showing us your work is the best way for us to determine where to begin helping you.

Cheers ~ Mark