1. What is Simple Interest on Judgement Debt?

Simple interest on judgement debt calculates the interest owed on a debt amount as determined by a court judgement. It uses the simple interest formula to determine the additional amount to be paid over time.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( I \) — Interest amount (₹ or currency)
• \( P \) — Principal debt amount (₹ or currency)
• \( r \) — Annual interest rate (decimal)
• \( t \) — Time period in years

Explanation: The formula calculates interest by multiplying the principal amount by the interest rate and the time period.

3. Importance of Interest Calculation

Details: Accurate interest calculation is crucial for determining the total amount owed on judgement debts, ensuring proper compensation, and maintaining legal compliance in financial settlements.

4. Using the Calculator

Tips: Enter the principal debt amount in ₹ or currency, annual interest rate as a decimal (e.g., 0.05 for 5%), and time period in years. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between simple and compound interest?
A: Simple interest is calculated only on the principal amount, while compound interest is calculated on both principal and accumulated interest.

Q2: How do I convert percentage interest rate to decimal?
A: Divide the percentage by 100 (e.g., 5% becomes 0.05).

Q3: Can this calculator handle partial years?
A: Yes, enter time as a decimal (e.g., 0.5 for 6 months, 1.25 for 15 months).

Q4: Is this calculation applicable for all types of debts?
A: This calculation is specifically designed for judgement debts where simple interest is applied as per court orders.

Q5: What currency should I use?
A: Use the currency specified in the judgement. The calculator works with any currency as long as you maintain consistency.