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compound interest

interest paid on both the principal and on accrued interest.
Origin of compound interest
First recorded in 1650-60 Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2018.
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Examples from the Web for compound interest
Contemporary Examples
Historical Examples
  • I often wonder if they realize that the prejudice is returned with compound interest.

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

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

    The Search

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

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

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

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

    Hide and Seek Wilkie Collins
British Dictionary definitions for compound interest

compound interest

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 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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