..... interest is calculated on the original principal only; accumulated interest from prior periods is not used in calculations for the following periods, and this type of interest calculation is normally used for a single period of less than a year, such as 30 or 60 days.
**(*) Basic**
**(*) Initial**
**(*) Simple**
**(*) Standard**

This is a companion discussion topic for the original entry at https://english.best/questions/10218,___-interest-is-calculated-on-the-original-principal-only-accumulated-interest-from-prior-periods-is-not-used-in-calculations-for-the-following-periods-and-this-type-of-interest-calculation-is-normally-used-for-a-single-period-of-less-than-a-year-such-as-30-or-60-days/