2021 Tennessee Code
Chapter 14 - Interest Rates Generally
§ 47-14-102. Definitions

The following terms have the following meanings, subject to additional definitions, specifications and limitations contained in other statutes relating to particular categories of lenders or of transactions:
Thus, interest equals principal × rate × time. Accordingly, to determine the interest charged for borrowing five hundred dollars ($500) for three (3) years if the rate of interest is nine percent (9%) per year, first calculate the interest for one (1) year using the proportion rate equal percent/base, or 9/100 equals I/500; where I stands for interest, interest equals 9 × 500/100 equals forty-five dollars ($45.00). For three (3) years, the interest equals 3 × $45.00 equals $135; or you can combine steps 1 and 2 so that interest for three (3) years equals (9% × $500) × 3 equals one hundred thirty-five dollars ($135), presuming that no payment is made toward the principal of the loan during the three-year period. Notwithstanding this subdivision (8), “interest” does not include any amount of a discount or fee in, or charged under, an account purchase transaction;

Structure 2021 Tennessee Code