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English definition of “simple interest”

simple interest

noun [U]     FINANCE
interest that is calculated only on the amount of money invested or borrowed and not on the interest that has already been added to it: If you borrow $1,000 at 12% per annum simple interest without paying back any capital, the interest is $120 at the end of each and every year. → Compare compound interest
(Definition of simple interest noun from the Cambridge Business English Dictionary © Cambridge University Press)
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