I won a claim for severance pay of NT$223,814 against my former employer. The employer started an appeal process but is now seeking an out-of-court settlement, offering me NT$200,000 in 6 installments. I want to try and get the full amount due to me, or as near as I can negotiate. According to the ruling, the amount due to me is NT$223,814 plus legal interest (法定利息 fading lixi). Unfortunately it doesn’t say what the rate of legal interest is.
[ol][li]I think the annual rate is 5%, can anyone comfirm this?[/li]
[li]Is the interest compound?[/li]
[li]The time elapsed so far is 31 months. If the legal interest rate is an annual rate, how do I work out the interest for additional months?[/li]
[li]If the employer pays me in installments (he wants to pay me in 6 installments), should he pay additional interest due to the delay in full payment, and, if so, how is it calculated :s ? (Note: I have already been advised that if he insists in paying in installments, I should insist that he make out all the post-dated cheques at the same time, before signing the agreement.)[/li][/ol]I don’t know much about law, and still less about financial calculations, so thanks to anyone who can help me with this.
You do annual interest compounded monthly (or something like that :s).
That sounds a little funny about the post dated checks. Basically (I think, I’m a tad rusty) you’d setup some dates that they were suppose to pay you by. Up until the first date interest would be running on the whole amount. Then up to the second date the interest would be running on 5/6th of the total, then 4/6th, etc. until it was totally paid off.
Now that I think about it, you could have them make predated checks for set amounts that include the interest. There are equations to compound interest yearly, monthly, daily or even constantly.
If you added the dates for the six installments or how far apart they might be (once a month, once every 2 months, etc.) I’m sure someone could/would figure out the amount of each check down to the NT for you.