How do you figure interest per year?

Question

I have a final judgment awarding $981.97, with accruing interest of 10% per year since July 16, 1998. If there are any math wizards out there, please help me! And/or please explain math process.

Answer 1

If interest is compounded on the original amount (that is interest is calculated on the interest + principal) then the formula is

FV = PV (1+i)^n

FV = Future value (or current)
PV = Original value
i = interest over period (eg 10% is i=0.1)
n = number of periods

In your case PV=981.97, i=0.1 and n = 10

so

FV = 981.97(1+0.1)^10
so you owe FV = $2546.98

If interest is accrued at a monthly period then

i= 0.1/12
n=10*12
and
FV = 981.97(1+(.1/12))*120
= $2658. 23

Answer 2

supposing yearly composing and 9 years C=981.97(1.10)^10
=2546.98 till 7/16/2007