Re: ASSISTANCE WITH CALCULATING INTEREST

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Ok, what you need to know first of all is if the interest is
compounded monthly on the monthly balance after the payment or
is the interest just a one time thing?

One time......

$7650.00 x .05 = $382.50 as a one time interest penalty or

compounding monthly would be.....

$7650.00 - 62.00 = $7588.00 x .05 = 379.40 + 7588.00 = 7967.40
then next month....

$7967.40 - 62.00 = 7905.40 x .05 = 395.27 + 7905.40 = 8300.67
then next month.....

$8300.67 - 62.00 = 8238.67 x .05 = 411.93 + 8238.67 = 8650.60
and so on.

I believe this to be what you need to do. Not 100% sure
though. Double check other forum sites since you haven't had
any responses yet.

Good luck!

On 5/28/09, R. Coley wrote:
> Can someone please assist me with how to calculate
> interest on child support arrearages. I can not afford a
> $1500 retainer to hire a lawyer to help me collect
> arrearages on support for my son. I live in Virginia and
> apparently the interest is 5 percent, but I don't know how
> to record the interest. When I went for a free
> consultation a local lawyer said that I should have a
> ledger to show the principal, interest, payment and amount
> due with interest from July 2003 to June 2009. The
> original arrearage amount was $7,650 with only $62 of his
> current support going towards the arrearages.
> Unfortunately I will need to have this information in
> court next week. Can someone please help??