You want to get a loan of R528,501, that needs to be repaid over 17years. Interest is calculated at 14.1% per annum compounded monthly. What will be the payment amount?

To calculate the monthly payment amount for a loan, we can use the formula for the monthly payment of an amortizing loan:

\[
M = \frac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}
\]

Where:
- \( M \) is the monthly payment.
- \( P \) is the loan principal amount (R528,501).
- \( r \) is the monthly interest rate (annual interest rate divided by 12).
- \( n \) is the total number of payments (loan term in years multiplied by 12).

Given:
- \( P = R528,501 \)
- Annual interest rate = 14.1% → Monthly interest rate \( r = \frac{14.1\%}{12} = \frac{0.141}{12} \approx 0.01175 \)
- Loan term = 17 years → \( n = 17 \times 12 = 204 \) months

Now, let's calculate the monthly payment \( M \).The monthly payment amount for the loan of R528,501, to be repaid over 17 years at an annual interest rate of 14.1% compounded monthly, will be approximately **R6,841.12**.

Would you like more details or have any questions about this calculation?

Here are some related questions:
1. How is compound interest different from simple interest?
2. What would happen if the interest rate changed to 12%?
3. How does the loan term affect the monthly payment?
4. What is the total amount repaid over the 17 years?
5. How much interest is paid over the course of the loan?
6. What is the impact of making extra payments on the loan?
7. How does monthly compounding differ from annual compounding?
8. What if the loan amount was R600,000 instead?

**Tip:** Understanding the impact of different interest rates and loan terms on monthly payments can help in making informed borrowing decisions.

Learn how to calculate the monthly payment for a loan of R528,501, to be repaid over 17 years at an annual interest rate of 14.1% compounded monthly. Get the detailed formula and step-by-step solution here.

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