Math word problem help!?

Ted wants to buy a 400.00 dollar bike. He has 2 options for payment he can borrow the 400 from his dad and repay him 40 dollars a month for a year Or the bike shop will finance the bike for one year at an 15% annual interest rate. the formula for the total amount paid (a) is:
a=p+prt, where p is the amount borrowed, r is the rate in interest, and t is the time in years which option will cost ted the least amount of money and why? please show work

please explain? this is 7th grade math not calculus!

to his dad he pays $480

Interest is annual, and your time period is noted as years, so the interest is simple, 400*0.15 = $60, total paid is $460

Second option is better.

.

If Ted borrows the $400 from his dad, he will end up paying $480 because...

$40 * 12 months = $480

Borrowing $400 from the bike shop will cost Ted $460 because...

p = $400
r = 15% = 0.15
t = 1 year

a = p + prt
a = $400 + ($400 * 0.15 * 1)
a = $400 + $60
a = $460

So, letting the bike shop finance the bike for one year will cost Ted the least amount of money.

total amount after the interest formula;

p(i+1)^t

i=interest, t=time, p=money which is borrowed

;)

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