compound interest meaning

WCompound interest
  • Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of interest to the principal is called compounding.
  • To define an interest rate fully, allowing comparisons with other interest rates, both the interest rate and the compounding frequency must be disclosed.
  • For any given interest rate and compounding frequency, an equivalent rate for any different compounding frequency exists.
  • Compound interest may be contrasted with simple interest, where interest is not added to the principal (there is no compounding).
compound interest
compound interest
  • Part-of-Speech Hierarchy
    1. Nouns
      • Countable nouns
        • Singularia tantum
          • Uncountable nouns
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      1. en compound interests
      Source: Wiktionary
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      Meaning of compound interest for the defined word.

      Grammatically, this idiom "compound interest" is a noun, more specifically, a countable noun and a singularia tantum.
      Definiteness: Level 1
      Definite    ➨     Versatile