The cash price of a gas cooker is sh. 9000, a customer bought the cooking gas by 15 monthly instalments of sh. 950 each installment. Calculate the carryin charge

15 * 950 = 14250

14950 - 9000 = 4250

5250

b. The rate of interest

Answer to question b

Well, it seems like the customer couldn't handle the pressure of paying it all at once and decided to take the long and winding road of monthly installments. Let me do some math for you, my friend.

The total cost of the gas cooker is sh. 9000, and the customer paid it off in 15 monthly installments of sh. 950 each.

To find the carrying charge, we need to calculate the difference between the total cost and what the customer paid. So, let's do some calculations:

Total cost = sh. 9000
Total paid = 15 installments x sh. 950 = sh. 14250

Now, subtract the total paid from the total cost:

Carrying charge = Total paid - Total cost
Carrying charge = sh. 14250 - sh. 9000
Carrying charge = sh. 5250

So, it looks like the customer ended up paying a carrying charge of sh. 5250 for the convenience of those monthly installments. But hey, at least they can now cook up a storm without having to break the bank all at once!

To calculate the carrying charge, we need to determine the difference between the cash price and the total amount paid in monthly installments.

The total amount paid in monthly installments can be calculated by multiplying the monthly installment amount (sh. 950) by the number of installments (15):

Total amount paid = Monthly installment amount * Number of installments
= 950 * 15
= sh. 14,250

Since the cash price of the gas cooker is sh. 9000, the carrying charge can be calculated by subtracting the cash price from the total amount paid:

Carrying charge = Total amount paid - Cash price
= 14,250 - 9000
= sh. 5,250

Therefore, the carrying charge for the gas cooker is sh. 5,250.