Mayer v. Medancic

{¶ 1} Pursuant to R.C. 1343.02, interest on written instruments containing stipulations for the payment of interest accrues at the rate specified in the instrument until payment is made. In the case at bar, we determine whether simple or compound interest accrues in the absence of the parties’ agreement on this issue. Simple interest is calculated only on principal and not on accumulated interest. Black’s Law Dictionary (9th Ed.2009) 887. Compound interest, on the other hand, is paid both on the principal and the “previously accumulated interest.” Id. In other words, simple interest does not…