Calculate: Penal Interest charges for the 15 days delay in the first

period of loan @30%.

Equation: A= P(1 + RT)
A= Answer
P= Principal Amount
R= Rate of interest
T= Time

Calculation:
1. First, converting R percent to r a decimal
r= R/100 = 30%/100 = 0.3 per year.
2. Putting time into years for simplicity,
15 days / 360 days/year = 0.041667 years.
3. Solving our equation:

A = 70000000(1 + (0.3 × 0.041667)) = 70875007

A= Rs.70.875.007.00

The total amount accrued, principal plus interest, from simple interest on a principal of
Rs.70,000,000.00 at a rate of 30% per year for 0.041667 years (15 days) is Rs.70,875.007.00.
The interest amount hence will be Rs. 7,08,75,007 – Rs. 7,00,00,000= Rs. 8,75,007.

Calculate: Penal interest charges for 11 month delay in

repayment of the loan @40%.

Answer:
Equation: A= P(1 + rt)
Calculation:
1. First, converting R percent to r a decimal
r= R/100 = 40%/100 = 0.4 per year.
2. Putting time into years for simplicity,
11 months / 12 months/year = 0.916667 years.
3. Solving our equation:
A = 70000000(1 + (0.4 × 0.916667)) = 95666676
A = Rs.95,666,676.00

The total amount accrued, principal plus interest, from simple interest on a principal of
Rs.70,000,000.00 at a rate of 40% per year for 0.916667 years (11 months) is
Rs.95,666,676.00. The interest amount hence will be I =A- P= Rs.2,56,66,676.00

The total penal interest charges will come upto Rs. 8,75,007 + Rs. 2,56,66,676 =
Rs.2,65,41,683.
To derive the total value of the suit we need to add the total penal interest charges with the
principal amount which is as follows:
Rs. 7,00,00,000 + Rs. 2,65,41,683= Rs. 9,65,41,683.

In order to calculate the court fee for the suit we need to refer to Schedule 1 of the Court-fees
(Delhi Amendment) Act,2012 which charges 4% of the total value above Rs. 20 lacs and
since our suit has crossed the threshold by far and large the court fee will be calculated as
follows:

Rs. 9,65,41,683 * 4% =Rs. 38,61,667.32