# compound interest meaning

ENWCompound 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).

- NounPLcompound interestsPREcom-SUF-est
- (banking, finance) Interest, as on a loan or a bank account, that is calculated on the total on the principal plus accumulated unpaid interest.

- (banking, finance) Interest, as on a loan or a bank account, that is calculated on the total on the principal plus accumulated unpaid interest.

## Definition of __compound interest__ in English Dictionary

- Part-of-Speech Hierarchy
- Nouns
- Countable nouns
- Singularia tantum
- Uncountable nouns

- Uncountable nouns

- Countable nouns

- Nouns

Source: Wiktionary

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