For purposes of section 120(1)(e) read with section 43(3) of the Act, the REPO rate is the rate which applied at the date of the investment or commencement of participation. The effective annual interest rate will be:

r = R X 1200

C x T,

where—

r              =              the effective interest rate,

R             =              the interest in Rand, which is the difference between the amount paid out to the investor or participant and the amount invested,

C             =              the amount invested by the investor or any amount paid by a person to become a member of a scheme, and

T             =              the period of the investment in months.