Calculating Judgment interest

[Zigner]

I don't know why they show a weekly rate, since they only list monthly or daily calculations as being allowed. The weekly rate would be inaccurate, since there isn't exactly 52 weeks in a year (52x7=364).

 

[tim_b]

I don't know why they show a weekly rate, since they only list monthly or daily calculations as being allowed. The weekly rate would be inaccurate, since there isn't exactly 52 weeks in a year (52x7=364).

Yeah, it is a bit confusing. If we ignore Weekly, the monthly rate still doesn't add up on the 1st of each months. Here's the 1st of each month:

It doesn't come full circle till 1/1/2019, a full year, for the math to add up again. That still leaves the balance in a state of flux by a few dollars day by day. I feel very concerned by this.

 

[Zigner]

What definition of "month" are you using?

 

[tim_b]

What definition of "month" are you using?

That the first of each month deliniates a new month?

 

[Zigner]

That the first of each month deliniates a new month?

You need to locate the definition of "month" in the applicable state's laws. It's more likely 30 days than it is actual months.

 

[tim_b]

You need to locate the definition of "month" in the applicable state's laws. It's more likely 30 days than it is actual months.

If that's true wouldn't that make the math even less accurate? An extra month would appear after 6 years?

 

[Zigner]

If that's true wouldn't that make the math even less accurate? An extra month would appear after 6 years?

I would suggest that you consult with an attorney familiar with this in the state in question. Write it off as a business expense (if possible)

 

[tim_b]

I would suggest that you consult with an attorney familiar with this in the state in question. Write it off as a business expense (if possible)

I work with attorneys. I'm designing a system for them. They don't know.

 

[Zigner]

I work with attorneys. I'm designing a system for them. They don't know.

Then speak to other attorneys.

 

[justalayman]

To add to your fun;

In New York, interest does not start accruing the day the judgment is ordered but the day the clerk records (dockets) it. While the law states the judgment shall be docketed immediately, well, we all know what can happen when human error comes into play.


You’re confusing yourself. New York post judgment interest is 9% per annum. You can’t break it down into smaller increments such as you have and work it in reverse.

While a week is 7 days, 7X52 doesn’t equal 365 so you can’t do what you are doing. All calculations need to be in the form x/365x.09xprinciple (may have my pemdas screwed up there but as a math whiz I would think you understand the intent)

There are no weeks or months in a rate expressed as per annum since a month varies in length and there are not an equal number of weeks in a year.

You also need to understand that New York does not compound interest so you can’t use my formula and calculate interest on a daily basis and carry that forward to create a new balance with each calculation. You can figure amount owed each subsequent day only.

Yes that ignores the leap year and if you want to get hyper technical you would have to adjust for that by tossing in an x/366 for every fourth year but to use that you would have to also figure in the date of docketing in regards to its relation with a leap year.