What is another word for simple interest?
Pronunciation: [sˈɪmpə͡l ˈɪntɹəst] (IPA) 
Simple interest can also be referred to as non-compounding interest or flat interest. The term non-compounding interest conveys that the interest earned on the principal amount does not get reinvested, and thus, the interest amount received remains constant throughout the loan or investment period. Flat interest accentuates the fact that the interest amount is predetermined, and the formula used for calculating it remains unchanged, irrespective of how long the investment duration is. Other synonyms for simple interest can include linear interest, direct interest, or nominal interest, as it measures only the principal amount without taking into account any other external factors that affect investments or loans. Ultimately, these synonyms convey one key aspect of simple interest: it is a basic, straightforward concept with a fixed rate of return.
