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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
For terms greater than 1 year, the penalty is 180 days simple interest.
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Ryley Amond, CNBC, 31 Dec. 2024
Most lenders use simple interest to calculate payments on a HELOC, rather than compound interest (where interest builds on top of interest).
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Kelsey Neubauer, CNBC, 29 Oct. 2024
For terms of five to seven years, the penalty is 18 months’ simple interest.
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Andreina Rodriguez, CNBC, 10 Oct. 2024
All of the bank’s CDs have a minimum opening deposit of $1 and charge an early withdrawal penalty of 90 days simple interest.
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Andreina Rodriguez, CNBC, 8 Sep. 2024
The solution lies in a simple interest rate cap along with greater transparency, disclosure, and early judicial review of TPLF agreements.
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Claire F. Rush, New York Daily News, 16 Mar. 2024
Most auto loans are simple interest loans.
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Elizabeth Rivelli, Car and Driver, 30 Jan. 2023
For one-year terms, the penalty is 180 days’ simple interest.
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Ivana Pino, Fortune, 22 Oct. 2022
For one to three-year terms, the penalty is 180 days simple interest.
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Byivana Pino, Fortune, 12 Oct. 2022
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Word History
First Known Use
1622, in the meaning defined above
Dictionary Entries Near simple interest
Cite this Entry
“Simple interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/simple%20interest. Accessed 8 Feb. 2025.
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
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