simple interest


noun

interest payable only on the principal; interest that is not compounded.

Origin of simple interest

First recorded in 1790–1800
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British Dictionary definitions for simple interest

simple interest


noun

interest calculated or paid on the principal aloneCompare compound interest
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Science definitions for simple interest

simple interest


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. Compare compound interest.
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