compound interest

noun

interest calculated on both the principal and the accrued interest

• Hypernyms: ↑interest

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noun

: interest paid or computed on the combined sum of the original principal of a loan and interest accrued and payable at the end of each agreed period (as monthly, quarterly, semiannually, or annually) — compare accumulation factor, simple interest

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interest paid on both the principal and on accrued interest.

[1650-60]

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compound interest noun

Interest added to the principal at the end of each period (usu a year) to form a new principal for the next period, thus giving further interest on the interest to date

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Main Entry: ↑compound

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compound interest see under ↑compound¹

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Main Entry: ↑interest

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compound interest UK US noun [uncountable] business

interest that is based both on an amount of money that someone has borrowed or saved and on the interest that has been added to it

Thesaurus: relating to borrowing money and owing money_hyponym

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compound interest,

interest paid on both the original sum of money borrowed or invested and on the interest added to it: »

Many banks pay compound interest on savings.

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noun [noncount]

finance : interest paid both on the original amount of money and on the interest it has already earned — compare ↑simple interest

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ˌcompound ˈinterest [compound interest] noun uncountable

interest that is paid both on the original amount of money saved and on the interest that has been added to it

compare ↑simple interest