Form 3 Mathematics
In a retail shop, the marked price of a cooker was Ksh 36 000. Wanandi bought the cooker on hire purchase terms. She paid Ksh 6400 as deposit followed by 20 equal monthly installments of Ksh 1750.
(i) The total amount of money she paid for the cooker.
(ii) The extra amount of money she paid above the marked price.
(b) The total amount of money paid on hire purchase terms was calculated at a
Compound interest rate on the marked price for 20 months. Determine the rate, per annum, of the compound interest correct to 1 decimal place.
c) Kaloki borrowed kshs 36000 form a financial institution to purchase a similar cooker. The financial institution charged a compound interest rate equal to the rate in (b) above for 24 months. Calculate the interest kaloki paid correct to the nearest shilling.
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