simple interest
1
3.4
- noun
- /ˈsɪmpəl ˈɪntrəst/
- Specialized
:
interés simple
- If you invest $1,000 at a rate of 5% per year, the simple interest earned after three years will be $150.
- calculate simple interest
- simple interest rate
No, because you're paying simple interest, you're earning compound interest.
- No, because you're paying simple interest, you're earning compound interest.
- No, 'cause you're paying simple interest, you're earning compound interest.
Examples
-
The statute specifies that the security deposit money is to be held by the landlord for the tenant during the term of the lease and that it bears simple interest at the rate of 5.5 percent per annum, non-compounded.
Academic text (1991) -
So we'll start from bonds, which is probably the most simple interest rate product on the market.
-
It may be necessary to review some simple interest calculations to make sure all students share a common level of understanding.
Academic text (2008) -
The first lesson in the first year post-graduation is the difference between simple interest and compounding/capitalizing interest.
Blog text (24) -
If the Treasury were "in charge" of our currency, they could make simple interest mortgages at 10%, rather than the compound interest that makes banks rich.
Blog text (15) -
If the Treasury were "in charge" of our currency, they could make simple interest mortgages at 10%, rather than the compound interest that makes banks rich.
Blog text (15) -
No, because you're paying simple interest, you're earning compound interest.
-
No, 'cause you're paying simple interest, you're earning compound interest.
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To find out how much you'll earn in a year, you can use the formula for simple interest based on the principal amount and the interest rate.
-
When taking out a loan, it's important to understand that simple interest means you will only pay interest on the original amount borrowed.
Antonyms
- Specialized
4
3.1
Extra money added to your savings and then paid again on that amount
Surface Forms
Morphology
The components 'simple' (not complex/basic) and 'interest' (payment for borrowing) give a B1 learner a clear hint that this refers to a basic form of interest rather than a more complex one. However, the technical restriction that interest is calculated only on the original principal (not on previously earned interest) is a specialized nuance not fully predictable from the words alone, so it is only partially transparent.
Etymology
Simple interest comes from an old money idea: simple meant 'single' or 'plain', so you only pay interest on the original amount, not on interest that has already built up. That's why simple interest means interest charged only on the 'starting amount'.