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
Interest is calculated as simple interest or compound interest.
From Textbooks • May 6, 2020
To find the interest we use the simple interest formula, I = Prt.
From Textbooks • Apr. 22, 2020
We have already had occasion to remark that no moral value attaches to the successes and failures of the isolated or simple interest.
From The Moral Economy by Perry, Ralph Barton
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.