A bicycle can be bought for sh 4500 cash or 12equal monthly installments of sh 400 calculate the carrying charges?

To calculate the carrying charges, we need to find the total amount paid for the bicycle in both scenarios and then find the difference.

1. Cash payment:
Total amount paid = sh 4500

2. Monthly installments:
Total amount paid = 12 installments x sh 400 = sh 4800

Carrying charges = Total amount paid in installments - Cash payment
Carrying charges = sh 4800 - sh 4500
Carrying charges = sh 300

Therefore, the carrying charges for buying the bicycle in monthly installments is sh 300.

Total cost of the installments = 12 x 400 = 4800

Carrying charges = 4800 - 4500 = 300