compound interest

noun

: interest computed on the sum of an original principal and accrued interest

Examples of compound interest in a Sentence

Recent Examples on the Web
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The courses typically cover concepts like compound interest and the time value of money — the idea that a sum of money generally is worth more now than the same amount in the future, because of factors like inflation and the ability to invest — but details vary by institution. Ann Carrns, New York Times, 10 Jan. 2025 Like compound interest, our seemingly minor but consistent deposits compound over time into a resource more valuable than any line item on our balance sheet. David A. Naylor, Forbes, 22 Jan. 2025 The core issue isn't necessarily the interest rate itself, but rather the combination of compound interest and penalties. Boaz Sobrado, Forbes, 22 Dec. 2024 This is because starting later means missing out on the power of compound interest, which allows investments to grow exponentially over time. Mike Winters, CNBC, 20 Dec. 2024 See all Example Sentences for compound interest 

Word History

First Known Use

1660, in the meaning defined above

Time Traveler
The first known use of compound interest was in 1660

Dictionary Entries Near compound interest

Cite this Entry

“Compound interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compound%20interest. Accessed 21 Feb. 2025.

Kids Definition

compound interest

noun
: interest paid or to be paid both on the principal and on accumulated unpaid interest

Legal Definition

compound interest

see interest sense 5

Last Updated: - Updated example sentences
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