What is the current rate of interest on a judgment?

What is the current rate of interest on a judgment?

• A. 7% per year
• B. 9% per year
• C. 9% per year, on original amount
• D. 5% per year

Answer: (C)

Post-judgment interest is the interest that accrues on a judgment from the date the judgment is entered until it’s paid, and the rate is set by statute in that jurisdiction. In this case, the statute prescribes a 9% per year rate, and it applies to the original judgment amount. That means interest is computed as 9% of the initial judgment amount for each year (or any portion of a year) that passes, regardless of any payments made afterward. It’s typically simple interest, not compounded. So the correct option reflects both the fixed rate and the method of calculation on the original amount, which is why it’s the best choice.

Post-judgment interest is the interest that accrues on a judgment from the date the judgment is entered until it’s paid, and the rate is set by statute in that jurisdiction. In this case, the statute prescribes a 9% per year rate, and it applies to the original judgment amount. That means interest is computed as 9% of the initial judgment amount for each year (or any portion of a year) that passes, regardless of any payments made afterward. It’s typically simple interest, not compounded.

So the correct option reflects both the fixed rate and the method of calculation on the original amount, which is why it’s the best choice.