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simple interest definition - finance
Interest that is paid only on the original principal or on the amount originally borrowed. Interest earned or interest charges are not included in future calculations. Because of this, the amount of interest earned, or owed, in the case of a loan, will be less than with a calculation that uses compound interest. See also compound interest.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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