Consequently, the Purchaser had an ongoing obligation to pay interest under the contract until the curb cut issue was decided. As a result, we find the trial court did not err in determining that the Purchaser's obligation to pay interest was not contingent upon its obtaining curb cut permission. The terms of the amendment, however, do not bear out this argument. As to the issue of statutory interest, the Purchaser argues that the trial court improperly awarded the Seller compound interest. Compound interest exists when accrued interest is added to the principal sum, and the whole is treated as a new principal for the calculation of the interest for the next period.
Compound interest is disfavored under Illinois law .
136 Ill. App. 84 Ill. App. The decision to allow statutory interest lies within the sound discretion of the trial court. 277 Ill. App. Although the monies owed to the Seller were calculated as interest on the purchase price of parcel 2, the payments represent the amount the Purchaser paid for the option to buy parcel 2.