Opinion ID: 1136438
Heading Depth: 2
Heading Rank: 8

Heading: SIMPLE vs. COMPOUND INTEREST

Text: By the terms of the Ryland lease dated August 5, 1956, Kate received a security deposit of $15,000 that later, pursuant to agreement of the parties, was extended to cover the Tower lease. In accordance with the terms of the lease, Kate was required to place the deposit in an interest-bearing savings account, as Trustee, [12] and to pay at least annually to the lessees the interest earned on the sums held on deposit. [13] The trial judge, in his amended judgment, ruled: 2. That defendants PAUL COWGILL, as Administrator of the Estate of Joseph M. Pabis and H.H. PORTER, as Administrator of the Estate of Herbert E. Kimmel, have judgment against plaintiffs in the sum of $15,000.00, together with interest thereon at the rate of 7% per annum, compounded, from August 5, 1956 until paid, being the sum of $18,224.48, for the period ending August 2, 1968 and thereafter accruing at the rate of $5.95 per day until August 5, 1968 wherein the rate will compound for an additional year, being the rate of $6.38 per day until August 5, 1969, wherein the rate will compound for an additional year. Kate never paid the annual interest which was a liquidated sum due and payable at least once each calendar year. Therefore, the trial judge awarded respondents interest on the annual interest installments from the time they became due  or compound interest, as he characterized the award  which was proper in this case. Cf. NRS 99.040; Paradise Homes, Inc. v. Central Sur. & Ins. Corp., 84 Nev. 109, 437 P.2d 78 (1968). Affirmed. COLLINS, C.J., and ZENOFF, BATJER, and THOMPSON, JJ., concur.