simple interest

noun

: interest paid or computed on the original principal only of a loan or on the amount of an account

Examples of simple interest in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Most lenders use simple interest to calculate payments on a HELOC, rather than compound interest (where interest builds on top of interest). Kelsey Neubauer, CNBC, 29 Oct. 2024 For terms of five to seven years, the penalty is 18 months’ simple interest. Andreina Rodriguez, CNBC, 10 Oct. 2024 All of the bank’s CDs have a minimum opening deposit of $1 and charge an early withdrawal penalty of 90 days simple interest. Andreina Rodriguez, CNBC, 8 Sep. 2024 The solution lies in a simple interest rate cap along with greater transparency, disclosure, and early judicial review of TPLF agreements. Claire F. Rush, New York Daily News, 16 Mar. 2024 Most auto loans are simple interest loans. Elizabeth Rivelli, Car and Driver, 30 Jan. 2023 For one-year terms, the penalty is 180 days’ simple interest. Ivana Pino, Fortune, 22 Oct. 2022 For one to three-year terms, the penalty is 180 days simple interest. Byivana Pino, Fortune, 12 Oct. 2022 Your bank charges a penalty that’s equal to, say, one year of simple interest. Nerdwallet, cleveland, 18 Dec. 2022

Word History

First Known Use

1622, in the meaning defined above

Time Traveler
The first known use of simple interest was in 1622

Dictionary Entries Near simple interest

Cite this Entry

“Simple interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/simple%20interest. Accessed 4 Dec. 2024.

Kids Definition

simple interest

noun
: interest paid or figured on the original amount only of a loan or on the amount of an account

Legal Definition

simple interest

see interest sense 5

Last Updated: - Updated example sentences
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