simple interest

simple interest definition - business

simple interest

The interest that is paid on an initial investment only. Simple interest is calculated by multiplying the investment principal times the annual rate of interest times the number of years involved. Compare compound interest.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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