Meaning of “simple interest” in the English Dictionary

british dictionary

"simple interest" in Business English

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simple interestnoun [ U ]

uk us 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.

(Definition of “simple interest” from the Cambridge Business English Dictionary © Cambridge University Press)

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