Investment Fundamentals

Simple Interest

Definition

What is Simple Interest?

Interest calculated only on the original principal, not on previously earned interest.

Example in practice

At 10% simple interest, ₦100,000 earns ₦10,000 each year.

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The original amount of money invested or lent, excluding later returns.

Money or other resources committed to produce income, growth, or another economic benefit.

An asset or commitment of money made with the expectation of future income, growth, or both.

Anything with economic value that can be owned or controlled.

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