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 Also a motivator was simple interest in the counterfactual. Jack Butler, National Review, 4 Nov. 2023 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 For three-year CDs, the penalty is equal to 90 days’ simple interest. Ivana Pino, Fortune, 26 Oct. 2022 For terms four years and up, the penalty is 365 days simple interest. Ivana Pino, Fortune, 5 Nov. 2022 CDs with term lengths of 48 months or longer are subject to an early withdrawal penalty of 365 days of simple interest at the current rate. Ivana Pino, Fortune, 5 Nov. 2022 See More

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'simple interest.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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 22 Feb. 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

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