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# compound interest

noun
1.
interest paid on both the principal and on accrued interest.
Origin of compound interest
1650-1660
First recorded in 1650-60
Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2018.
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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.

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

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

November 24, 2008
Historical Examples
• I often wonder if they realize that the prejudice is returned with compound interest.

Jane Burr
• You are figuring hens the way you do compound interest, but you are away off.

George W. Peck
• “You are paying that old score back in compound interest,” said Cameron.

Grace Livingston Hill
• compound interest,” said Dale, and this made everybody laugh.

Arthur M. Winfield
• She returned his affection with compound interest—in her eye.

Daniel W. Jones
• Interest was a good discovery, but compound interest a good deal better.

George Gissing
• The rings at the bell began to multiply at compound interest.

Wilkie Collins
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 New Dictionary of Cultural Literacy, Third Edition