To calculate the monthly repayment amount for a home loan, we can use the formula for a monthly loan payment:
M = P * (r * (1+r)^n) / ((1+r)^n - 1)
Where:
M is the monthly repayment amount,
P is the principal loan amount,
r is the monthly interest rate,
n is the total number of monthly payments.
In this case, the principal loan amount (P) is R750,000, the annual interest rate is 12%, the repayment period is 20 years.
First, we need to convert the annual interest rate to a monthly interest rate. Since there are 12 months in a year, the monthly interest rate (r) is 12% / 12 = 1% = 0.01.
Next, we need to calculate the total number of monthly payments (n). Since the repayment period is 20 years, the total number of monthly payments is 20 * 12 = 240.
Now, we can substitute these values into the formula:
M = 750,000 * (0.01 * (1+0.01)^240) / ((1+0.01)^240 - 1)
Using a calculator, we can evaluate this expression to find M = R8,258.94
Therefore, the monthly repayment amount for the home loan is approximately R8,258.94.