A breach of contract occurs on January 2, 2022. The contract did not include an agreed upon interest rate.

The Statement of Claim was filed April 15, 2022. The claim was for $80,000. There was a quick trial, and the plaintiff was successful in their full claim as well as legal costs to the plaintiff for $10,000. The judgment was dated September 30, 2022. The judgment was wholly paid on November 15, 2022.

Prejudgment interest rates for the 1st quarter of year 2022 are 0.5%. For the 2nd quarter they are also 0.5%. For the 3rd quarter they are 1.8% and for the 4th quarter they are 2.8%. Postjudgment interest rates are 2.0% for the 1st and 2nd quarters, and 2% for the 3rd and 4.0% for the 4th quarter of 2022.

1. How much prejudgment interest was awarded when the judgment was granted? (5 Marks)

1. At the point in time when the final judgment was paid, how much post judgment interest would also be payable? (5 Marks)

Answer rating: 100% (QA)

To calculate the prejudgment interest awarded when the judgment was granted we need to determine the ... View the full answer