simple interest

American  

noun

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

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simple interest British  

noun

1. interest calculated or paid on the principal alone Compare compound interest

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simple interest Scientific  

1. 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.

2. Compare compound interest

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Etymology

Origin of simple interest

First recorded in 1790–1800

Example Sentences

To understand how compound interest works, let’s look at another kind of interest: simple interest.

From Seattle Times • Aug. 1, 2022

Casey deposited $1,450 in a bank account that earned simple interest at an interest rate of 4%.

From Textbooks • May 6, 2020

We have used the simple interest formula, I = Prt, where t represented the number of years.

From Textbooks • Apr. 22, 2020

We can also use the mixture model to solve investment problems using simple interest.

From Textbooks • Apr. 22, 2020

Yet the rare good-humor and simple interest of his face tended to reassure me.

From Prisoners of Chance The Story of What Befell Geoffrey Benteen, Borderman, through His Love for a Lady of France by Parrish, Randall