simple interest

Definition

The interest calculated on a principal sum, not compounded on earned interest.

Use simple interest in a sentence

You need to make sure that you are calculating all of the simple interest before you decide on how to proceed.

​ Was this Helpful? YES  NO 11 people found this helpful.

The simple interest calculation was performed by the financial analyst and then presented to management during the weekly team meeting.

​ Was this Helpful? YES  NO 7 people found this helpful.

When our CEO made a short-term loan to his brother-in-law, he asked me to calculate how much his brother-in-law would owe him if he only charged him a flat simple interest fee.

​ Was this Helpful? YES  NO 11 people found this helpful.

Show more usage examples...

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
SIMPLE 401(k) Plan Annual Percentage Rate