Business / Taxes / Simple Interest: If you earn simple interest on money you deposit in a bank or use to purchase a certificate of deposit (CD), the interest is figured on the amount of your principal alone. For example, if you had $1,000 in an account that paid 5% simple interest for five years, you'd earn $50 a year ($1,000 x .05 = $50) and have $1,250 at the end of five years. In contrast, if you had been earning compound interest, you'd have $1,276.29 at the end of five years, since the interest you earned each year, as well as your principal, would have earned interest.
Interest Noun Synonyms: attention, attentiveness, concern, regard, curiosity, scrutiny, notice, engagement
Interest Adjective Synonyms: concern, significance, importance, weight, moment, note, consequence
Simple Adjective Synonyms: unsophisticated, naive, slow, slow-witted, stupid, thick, thickheaded, simple-minded, feeble-minded, oafish, bovine, dense, obtuse, dull, dull-witted, witless, halfwitted, brainless, backward, imbecilic or imbecile, cretinous, dumb, mo
Simple Verb Synonyms: uncomplicated, plain, uninvolved, unsophisticated, understandable, intelligible, (easily) understood, comprehensible, clear, lucid, straightforward, easy, elementary, basic
Business / Accounting / Compound Interest: Interest credited daily, monthly, quarterly, semi-annually, or annually on both principal and previously credited interest. MORE
Business / Accounting / Interest: The payment (cost) for the use of money. Money paid to savers and investors by financial institutions, government, or corporations for the use of their money (example: 5% interest on a Certificate of MORE