Interest

(in'tür-est.) [Fr. intêrêt, from L. intere e, to be between.] (Arith.) A rule by which the interest accruing on money is computed.-(Finance, dc.) The sum of money paid or allowed, according to a fixed rate, for the loan or use of some other sum. The sum lent is called the principal; the sum agreed on as I. is called the percentage, or rate per cent. I. is of two kinds: simple and compound. Simple I. is that which is paid on the original sum lent; compound, that which is paid not only upon the principal but upon arrears of unpaid interest. When I. at 5 per cent. is thus added to principal, the accumulations equal the original sum in about 14 years. See DISCOUNT. [s. 488]