simple interest
Americannoun
noun
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Interest computed only on the original principal and not on the sum of the principal plus accrued interest. The amount of simple interest remains constant.
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Compare compound interest
Etymology
Origin of simple interest
First recorded in 1790–1800
Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
To understand how compound interest works, let’s look at another kind of interest: simple interest.
From Seattle Times ● Aug. 1, 2022
Sean’s new car loan statement said he would pay $4,866,25 in interest from a simple interest rate of 8.5% over five years.
From Textbooks ● May 6, 2020
Carleen deposited $16,400 in a bank account that earned simple interest at an interest rate of 3.9% How much interest was earned in eight years?
From Textbooks ● May 6, 2020
The formula we use to calculate simple interest is I = Prt.
From Textbooks ● Apr. 22, 2020
The mill and its contents earn for their operator nothing but simple interest on the money they have cost.
From Essentials of Economic Theory As Applied to Modern Problems of Industry and Public Policy by John Bates Clark
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
