Simple interest
Revision as of 14:21, 28 October 2019 by Gary (talk | contribs) (Created page with "Simple interest is an interest that is not earned on interest. ==Definitions== According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C...")
Simple interest is an interest that is not earned on interest.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Simple interest. The situation when interest is not compounded; that is, interest is not earned on interest. Also called regular interest. Divide the nominal interest rate by 365 and multiply by the number of days the funds are borrowed to find the interest for the term borrowed.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
