anatocism


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anatocism

the act of lending with interest.
See also: Money
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References in periodicals archive ?
Historically, the assessment of interest against interest, a practice that in legal jargon is termed as anatocism, has been considered not only immoral, but even illegal.
However, while anatocism implies compound interest, the opposite is not always true.
Finally, I explain the formula for calculating simple interest, which eliminates the capitalization of interest implicit in the effective rate, where the judge had ordered to prevent anatocism.