Definition of 'compound interest'

Word Frequency

compound interest

uncountable noun

Compound interest is interest that is calculated both on an original sum of money and on interest which has previously been added to the sum. Compare simple interest.

[business]

Word Frequency

compound interest in British

noun

interest calculated on both the principal and its accrued interest

Compare simple interest

Word Frequency

compound interest in American

interest computed on the sum of the principal and the accrued interest

compound interest in Accounting

(kɒmpaʊnd ɪntrɪst)

noun

(Accounting: Investing)

Compound interest is interest that is paid both on an original sum of money and on interest that has already been paid on that sum.

When money is invested at compound interest, each interest payment is reinvested to earn more interest in subsequent periods.

We compute compound interest on principal and on any interest earned that has not been paid or withdrawn.

Compound interest is interest that is paid both on an original sum of money and on interest that has already been paid on that sum.

interest

Word Frequency

compound interest in Finance

(kɒmpaʊnd ɪntrɪst)

noun

(Finance: General)

Compound interest is interest that is paid both on an original sum of money and on interest that has already been paid on that sum.

When money is invested at compound interest, each interest payment is reinvested to earn more interest in subsequent periods.

We compute compound interest on principal and on any interest earned that has not been paid or withdrawn.

Compound interest is interest that is paid both on an original sum of money and on interest that has already been paid on that sum.

interest

Example sentences containing 'compound interest'

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Where is my money and the compound interest that will have accrued over that time? Times, Sunday Times (2010)The power of compound interest to grow money is a wonderful thing, except when applied to rising debts. Times, Sunday Times (2014)