Which base amount is used to compute judgment interest?

Which base amount is used to compute judgment interest?

• A. Original amount
• B. Remaining balance
• C. Total amount including interest
• D. Interest accrues on fees

Answer: (A)

Judgment interest is calculated on the original principal amount awarded in the judgment. This base amount starts the interest, and interest is added over time on that principal, not on a balance that already includes interest. Fees or other items included in the judgment are part of that principal, not separate bases for interest. For example, if the judgment is for ten thousand dollars, interest accrues on that ten thousand from the date the judgment is entered, at the statutory rate, until paid.

Judgment interest is calculated on the original principal amount awarded in the judgment. This base amount starts the interest, and interest is added over time on that principal, not on a balance that already includes interest. Fees or other items included in the judgment are part of that principal, not separate bases for interest. For example, if the judgment is for ten thousand dollars, interest accrues on that ten thousand from the date the judgment is entered, at the statutory rate, until paid.