Interest which is paid only on the principal and not on the additional amount generated by previous interest payments. A formula for computing simple interest is

where is the sum of principal and interest at time for a constant interest rate .

Interest which is paid only on the principal and not on the additional amount generated by previous interest payments. A formula for computing simple interest is

where is the sum of principal and interest at time for a constant interest rate .

Weisstein, Eric W. "Simple Interest."
From *MathWorld*--A Wolfram Web Resource. https://mathworld.wolfram.com/SimpleInterest.html