The 6.75% interest applies from the date of judgement to the date of payment by Tesla but the inflation (from date of purchase to date of judgement) is not accounted for.
Inflation is why the awarded interest rate is 6.75%.
That rate was determined by the Consumer Credit Commissioner of Texas, which calculated it using the federal reserve rate, which itself is selected to meet an inflation goal, incorporating current inflation levels as well as the predicted inflationary effect of changing the server rate.
If inflation was zero, the interest rate would have been lower. If inflation were double, that rate would be higher.
Interest is awarded to counter the affects of inflation and the loss of opportunity cost. They aren't accounted for individually, instead inflation is part of the equation.
I meant that the ruling awarded interest from the date of judgement to the date of payment but does not account for Inflation between the date of purchase and the date of judgement.
I didn’t mean to imply that interest and inflation are unrelated, I was referring to the two different time periods. Sorry if that wasn’t clear.
The 6.75% interest applies from the date of judgement to the date of payment by Tesla but the inflation (from date of purchase to date of judgement) is not accounted for.
Inflation is why the awarded interest rate is 6.75%.
That rate was determined by the Consumer Credit Commissioner of Texas, which calculated it using the federal reserve rate, which itself is selected to meet an inflation goal, incorporating current inflation levels as well as the predicted inflationary effect of changing the server rate.
If inflation was zero, the interest rate would have been lower. If inflation were double, that rate would be higher.
Interest is awarded to counter the affects of inflation and the loss of opportunity cost. They aren't accounted for individually, instead inflation is part of the equation.
Yes, this is correct.
I meant that the ruling awarded interest from the date of judgement to the date of payment but does not account for Inflation between the date of purchase and the date of judgement.
I didn’t mean to imply that interest and inflation are unrelated, I was referring to the two different time periods. Sorry if that wasn’t clear.
1 reply →