1887

n Without Prejudice - Accurate calculations : financial law

USD

 

Abstract

It is customary for a creditor to levy interest on amounts due by a debtor. At common law, interest is calculated only on the unrepaid principal and not on any interest which is payable in terms of the loan ( 1968 3 SA 541 (R)). This is commonly referred to as "simple interest". However, there may be circumstances where a party is directed to pay compound interest, as opposed to simple interest, on the relevant amount. Where compound interest is provided for, the interest will be calculated for the agreed period of time, for example a month, quarter or a year, and will then be added to the capital so that the interest for the succeeding period will be calculated on the combined sum (LAWSA, Second Edition, Volume 15 (2), p185).

Loading

Article metrics loading...

/content/jb_prej/15/4/EJC172113
2015-05-01
2016-12-03
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error