Simple interest

Simple interest - Interest paid on principle alone (i.e. not compound).

Application to Forensic Economics

Michigan state cases require the use of simple interest for discounting.


 * (2) As used in this section, “gross present cash value” means the total amount of future damages reduced to present value at a rate of 5% per year for each year in which those damages accrue, as found by the trier of fact as provided in section 6305(1)(b).


 * From: http://www.legislature.mi.gov/(S(1b1brearycow0cubtly4jv45))/mileg.aspx?page=getobject&objectname=mcl-600-6306