Business Terms and Jargon Explained

What is Simple Interest

This is where interest is charged on the initial amount borrowed or invested only.
E.g 100k is borrowed.
Interest at 10% is 10K
After the first year there will be an amount owning of 110k. the interest for the second year will be calculated on the 100k(original amount) rather than the 110k.

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Term created / updated 2006-07-30 16:21:41

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