# compound interest

noun
1.
interest paid on both the principal and on accrued interest.
Origin of compound interest
1650-1660
1650-60
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2015.
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Examples from the Web for compound interest
Contemporary Examples
• With time and population growth, you didn't need to be able to do compound interest; you just had to be able to count.

• In a classroom environment, were taught about compound interest, mortgages, and debt.

November 23, 2008
• The magic of compound interest means that it's always hard to make up for lost time.

Historical Examples
• Not from the Jews, for their compound interest of fifty per cent every six months would have ruined him in less than two years.

John Lord
• The rings at the bell began to multiply at compound interest.

Wilkie Collins
• It is in fact the sum which the company has been improving at compound interest against the day when the policy must be paid.

Various
• In the long run, these things pay, and with compound interest at that.

Myrtle Reed
• Divide the interest for one year upon the sum to be accumulated by the compound interest upon \$1.00 for the stipulated time.

• And I've paid you off, I think, my friend Gilbert, with compound interest.

May Agnes Fleming
• Twenty thousand at compound interest for seven years, he thought, as he made the first turn.

Harold MacGrath
British Dictionary definitions for compound interest

## compound interest

noun
1.
interest calculated on both the principal and its accrued interest Compare simple interest
Collins English Dictionary - Complete & Unabridged 2012 Digital Edition
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012
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compound interest in Science
 compound interest   Interest computed on the original principal plus any accrued interest. Thus if 5% is the rate of interest per year and the principal is \$1000, the compound amount after one year will be \$1050, after two years it will be \$1050 × 0.05 = \$1102.50, after three years it will be \$1102.50 × 0.05 = \$1157.63, and so forth. Mathematically, if P is the original principal and I the rate of interest expressed as a decimal, the compound amount at the end of the nth year will be P(1 + I)n. The growth of the compound amount is exponential and not linear. Compare simple interest.
The American Heritage® Science Dictionary
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compound interest in Culture

### compound interest definition

Interest that is added not only to the principal of a loan or savings account but also to the interest already added to the loan or account; interest paid on interest.

The American Heritage® New Dictionary of Cultural Literacy, Third Edition
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### Difficulty index for compound interest

Few English speakers likely know this word

### Word Value for compound

15
20
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