3) Mrs Moodley takes out a loan of R16 000, which is repaid together with simple interest at \( 12 \% \) p.a. on the full amount of the loan over a period of 4 years. Calculate the amount of money that must be repaid each month.

To calculate the total amount that Mrs. Moodley must repay, let's first find the total interest on the loan. The formula for simple interest is: \[ \text{Interest} = \text{Principal} \times \text{Rate} \times \text{Time} \] Using the values provided: - Principal (P) = R16,000 - Rate (R) = 12% per annum = 0.12 - Time (T) = 4 years So, the interest for the loan is: \[ \text{Interest} = R16,000 \times 0.12 \times 4 = R7,680 \] Now, to find the total amount payable after 4 years, we add the interest to the principal: \[ \text{Total Amount} = \text{Principal} + \text{Interest} = R16,000 + R7,680 = R23,680 \] Next, we need to find the monthly repayment amount. Since the loan is repaid over 4 years, the total repayment period in months is: \[ 4 \text{ years} \times 12 \text{ months/year} = 48 \text{ months} \] Thus, the monthly payment is: \[ \text{Monthly Payment} = \frac{\text{Total Amount}}{\text{Number of Months}} = \frac{R23,680}{48} \approx R493.34 \] Therefore, Mrs. Moodley must repay approximately R493.34 each month.