## Definitions for Compound Interest

### Princeton's WordNet(0.00 / 0 votes)Rate this definition:

1. compound interest(noun)

interest calculated on both the principal and the accrued interest

### Wiktionary(0.00 / 0 votes)Rate this definition:

1. compound interest(Noun)

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

### Freebase(0.00 / 0 votes)Rate this definition:

1. Compound interest

Compound interest arises when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. This addition of interest to the principal is called compounding. A bank account, for example, may have its interest compounded every year: in this case, an account with \$1000 initial principal and 20% interest per year would have a balance of \$1200 at the end of the first year, \$1440 at the end of the second year, and so on. In order to define an interest rate fully, and enable one to compare it with other interest rates, the interest rate and the compounding frequency must be disclosed. Since most people prefer to think of rates as a yearly percentage, many governments require financial institutions to disclose the equivalent yearly compounded interest rate on deposits or advances. For instance, the yearly rate for a loan with 1% interest per month is approximately 12.68% per annum. This equivalent yearly rate may be referred to as annual percentage rate, annual equivalent rate, effective interest rate, effective annual rate, and by other terms. When a fee is charged up front to obtain a loan, APR usually counts that cost as well as the compound interest in converting to the equivalent rate. These government requirements assist consumers to compare the actual costs of borrowing more easily.

### Numerology

1. Chaldean Numerology

The numerical value of Compound Interest in Chaldean Numerology is: 1

2. Pythagorean Numerology

The numerical value of Compound Interest in Pythagorean Numerology is: 4

### Sample Sentences & Example Usage

1. Albert Einstein when asked what he considered to be the most powerful force in the universe answered: Compound interest! What you have become is the price you paid to get what you used to want.

# Translations for Compound Interest

### From our Multilingual Translation Dictionary

• الفائدة المركبة
• složitý úrok
• renters rente
• Zinseszins
• ανατοκισμός
• interés compuesto
• ربح مرکب
• koronkorko, korkoa korolle
• l&#39;intérêt composé
• चक्रवृद्धि ब्याज
• kamatos kamat
• bunga berganda
• interesse composto
• הריבית דריבית
• 複利
• 복리
• faenore
• samengestelde interest
• rentes rente
• juros compostos
• interes compus
• сложные проценты, сло
• ränta på ränta
• கூட்டு வட்டி
• చక్రవడ్డీ
• ดอกเบี้ยทบต้น
• bileşik faiz
• складні відсотки
• کمپاؤنڈ سود
• lãi kép
• קאַמפּאַונד אינטערעס
• 复利

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"Compound Interest." Definitions.net. STANDS4 LLC, 2017. Web. 19 Oct. 2017. <http://www.definitions.net/definition/Compound Interest>.