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
To find the rate, we use the simple interest formula, substitute in the given values for the principal and time, and then solve for the rate.
From Textbooks ● Apr. 22, 2020
To find the interest we use the simple interest formula, I = Prt.
From Textbooks ● Apr. 22, 2020
The formula we use to calculate simple interest is I = Prt.
From Textbooks ● Apr. 22, 2020
After his death his estate paid nine years' simple interest on his deficit, and ten years thereafter, the principal was paid.
From Little Journeys to the Homes of the Great - Volume 03 Little Journeys to the Homes of American Statesmen by Hubbard, Elbert
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.
