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compound interest

noun
1.
interest paid on both the principal and on accrued interest.
Origin
1650-1660
1650-60
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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Examples from the web for compound interest
  • The topics ranged from compound interest to number theory, hydrodynamics and astronomy.
  • Note: the cost will rise forever as compound interest works both ways.
  • Now for you fans of compound interest out there, that works out to be quite an impressive total after two decades.
  • Thanks to compound interest, even small sacrifices count.
  • compound interest turns wealth into more wealth and debt into more debt.
  • compound interest on loans was now a breeze to calculate.
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
© William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
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
Copyright © 2002. Published by Houghton Mifflin. All rights reserved.
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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
Copyright © 2005 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Difficulty index for compound interest

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Word Value for compound

15
20
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