Simple interest is defined as interest that is calculated on an amount (principal) that remains constant.
Simple interest is calculated with the following formula:
I = C . i . t
I: Interest rate.
C: Capital (amount borrowed or deposited)
t: Repayment term
Related terms
Creditor | Capital | Debtor | Lender | Deposit | Mortgage | Mixed interest rate mortgage | Variable interest rate mortgage | Foreign currency mortgage | Reverse Mortgage | Subprime Mortgage | Interest | Compound Interest | CPI | Loan | NIR | Interest rate | Compound interest rate | Fixed interest rate | Variable interest rate