We have just released a new calculator in the Lawyers Section – Compound Interest.
This handy little calculator provides you with the compound interest on an amount between two dates at an interest rate.
We usually use Excel to calculate compound interest, so this calculator makes the process faster and easier even for us.
Whilst courts will generally award interest on a simple basis in accordance with the prejudgment interest, in some instances interest will be awarded on a compound basis.
The Financial Services Ombudsman will often award interest on a compound basis reflecting the nature of the the applicants loss of investment income over the period.
The Compound Interest Calculator is also useful to compare the difference between an award of compound interest and prejudgment interest.
The rate of prejudgment interest being 4% above the RBA Cash Rate will often be considerably higher that than the bank term deposit interest rate at the time, so simple interest may often exceed compound interest.
The Compound Interest Calculator is part of the Lawyers Section of Dolman Bateman. The Lawyers Section is a suite of calculators specifically designed for litigation Lawyers in Australia.