compound interest

compound interest
compound interest see interest 5

Merriam-Webster’s Dictionary of Law. . 1996.

compound interest
n.
Interest paid both on principal and on any interest already accumulated.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


compound interest
Interest paid at least in part on accumulated interest. For example, if interest on a savings account is compounded monthly, the depositor is paid interest on the amount deposited after the first month. After the second month, the depositor receives interest on the total amount in the account: the amount deposited plus the interest paid in the first month.
Category: Personal Finance & Retirement

Nolo’s Plain-English Law Dictionary. . 2009.

compound interest
Interest calculated on the sum of the principal plus any accumulated interest.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.


compound interest
Interest generated by the sum of the principal and any accrued interest.

Dictionary from West's Encyclopedia of American Law. 2005.


compound interest
Interest generated by the sum of the principal and any accrued interest.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

compound interest
n.
   payment of interest upon principal and previously accumulated interest, which increases the amount paid for money use above simple interest. Thus, it can increase more rapidly if compounded daily, monthly or quarterly. The genius physicist Albert Einstein called compound interest man's "greatest invention." Most lenders agree.
   See also: interest, promissory note

Law dictionary. . 2013.

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Look at other dictionaries:

  • compound interest — Interest computed by applying the simple rate of interest to calculate interest on principal plus interest on successive increments of interest earned in prior periods. American Banker Glossary interest paid on previously earned interest as well… …   Financial and business terms

  • Compound interest — Interest paid on previously earned interest as well as on the principal. The New York Times Financial Glossary * * * compound interest compound interest ➔ interest * * *    The interest amount earned on the original principal and on the… …   Financial and business terms

  • Compound interest — Compound Com pound, a. [OE. compouned, p. p. of compounen. See {Compound}, v. t.] Composed of two or more elements, ingredients, parts; produced by the union of several ingredients, parts, or things; composite; as, a compound word. [1913 Webster] …   The Collaborative International Dictionary of English

  • Compound interest — Interest In ter*est, n. [OF. interest, F. int[ e]r[^e]t, fr. L. interest it interests, is of interest, fr. interesse to be between, to be difference, to be importance; inter between + esse to be; cf. LL. interesse usury. See {Essence}.] [1913… …   The Collaborative International Dictionary of English

  • Compound Interest — Interest that accrues on the initial principal and the accumulated interest of a principal deposit, loan or debt. Compounding of interest allows a principal amount to grow at a faster rate than simple interest, which is calculated as a percentage …   Investment dictionary

  • compound interest — n [U] ↑interest that is calculated on both the sum of money lent or borrowed and on the unpaid interest already earned or charged →↑simple interest …   Dictionary of contemporary English

  • compound interest — n. interest computed on the sum of the principal and the accrued interest: cf. SIMPLE INTEREST …   English World dictionary

  • compound interest — noun uncount 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 …   Usage of the words and phrases in modern English

  • Compound interest — The effect of earning 20% annual interest on an initial $1,000 investment at various compounding frequencies Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also… …   Wikipedia

  • compound interest — noun interest calculated on both the principal and the accrued interest • Hypernyms: ↑interest * * * 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… …   Useful english dictionary

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