How do I calculate the amount of interest owed on a small claims court judgment?

In Massachusetts, interest on small claims court judgments is calculated using a statutory formula. The formula is based on the five-year average of the weekly average yield of one year Treasury bills. The weekly rate of interest can be found on the website of the Federal Reserve Bank. Once the weekly average rate of interest has been determined, it can be multiplied by the amount of the judgment, then divided by the number of days since the judgment was entered, in order to calculate the amount of interest owed. For example, if a judgment for $500 was entered on January 1, and the weekly rate of interest is currently 4%, then the amount of interest that would be owed would be calculated as follows: 4% x $500 = $20 $20/7 days = $2.86 $2.86 x 5 days = $14.30 Therefore, the amount of interest owed on the $500 judgment would be $14.30. It is important to note that the weekly rate of interest can change over time, so the amount of interest owed will also change accordingly. It is also important to note that interest will not accrue until 30 days after the judgment has been entered. Therefore, it is important to keep track of the amount of interest owed in order to ensure that payment is made in full.

Related FAQs

How do I collect a judgment from an individual who does not have assets?
How do I go about representing myself in small claims court?
What happens if a judgment is not paid in small claims court?
Can I appeal a ruling of a small claims court judge?
How does small claims court handle appeals?
What is the process for appealing a small claims court decision?
Can I countersue the other party in a small claims court case?
Can I settle my small claims court dispute without going to trial?
Are there any limits on the amount of damages I can be awarded in a small claims court case?
How can I enforce a small claims court judgment out-of-state?

How do I calculate the amount of interest owed on a small claims court judgment?

Related FAQs

Related Blog Posts