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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 oneyear terms, the penalty is 180 days’ simple interest.
—Ivana Pino, Fortune, 22 Oct. 2022
For one to threeyear 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 threeyear 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
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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 MerriamWebster or its editors. Send us feedback about these examples.
Word History
First Known Use
1622, in the meaning defined above
Dictionary Entries Near simple interest
Cite this Entry
“Simple interest.” MerriamWebster.com Dictionary, MerriamWebster, https://www.merriamwebster.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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