Legal interest

That rate of inters est prescribed by the laws of the particular state or country as the highest which may be lawfully contracted for or exacted, and which must be paid in all cases where the law allows interest without the assent of the debtor. Towslee v. Durkee, l2 Wis. 485; American, etc., Ass'n v. Harn (Tex. Civ. App.) 62 S. W. 75; Beals v. Amador County, 35 Cal. 633.

— Simple Interest. that which is paid for the principal or sum lent, at a certain rate or allowance, made by law or agreement of parties.

— Compound interest. interest upon interest, where accrued interest is added to the principal sum, and the whole treated as a new principal, for the calculation of the interest for the next period.

Defined under Interest in Black's Law Dictionary.