If judgment does not waive interest, it is calculated at what rate on the amount of what?

• A. 5% on refund
• B. 3% on refund
• C. 5% on assessment
• D. 7% on payment

Answer: (A)

The key idea is that when a judgment does not waive interest, interest is charged at a fixed rate on the amount of the refund. Here, that rate is 5% per year, and the base is the refund itself—not what was assessed or what is paid.

So, if you’re owed a refund, interest accrues at 5% per year on that refund amount until it’s paid. For example, a $1,000 refund would accumulate $50 of interest in one year. The other options mix up either the rate or the base (interest on an assessment or on a payment, or a different percentage), which is why they don’t fit.