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
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For terms of five to seven years, the penalty is 18 months’ simple interest. — Andreina Rodriguez, CNBC, 24 Feb. 2025 Unlike simple interest rates, APR reflects the total cost of a loan, including origination fees, closing costs, and other charges. — True Tamplin, Forbes, 21 Feb. 2025

Word History

First Known Use

1622, in the meaning defined above

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

Rhymes for simple interest

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“Simple interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/simple%20interest. Accessed 15 Mar. 2025.

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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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