### What does **compound interest** mean?

## Definitions for **compound interest**

#### Here are all the possible meanings and translations of the word **compound interest**.

### Princeton's WordNet

compound interest(noun)

interest calculated on both the principal and the accrued interest

### Wiktionary

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

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

Chaldean Numerology

The numerical value of compound interest in Chaldean Numerology is:

**1**Pythagorean Numerology

The numerical value of compound interest in Pythagorean Numerology is:

**4**

### Sample Sentences & Example Usage

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.

### Images & Illustrations of compound interest

# Translations for **compound interest**

### From our Multilingual Translation Dictionary

- الفائدة المركبةArabic
- složitý úrokCzech
- renters renteDanish
- ZinseszinsGerman
- ανατοκισμόςGreek
- interés compuestoSpanish
- ربح مرکبPersian
- koronkorko, korkoa korolleFinnish
- l'intérêt composéFrench
- चक्रवृद्धि ब्याजHindi
- kamatos kamatHungarian
- bunga bergandaIndonesian
- interesse compostoItalian
- הריבית דריביתHebrew
- 複利Japanese
- ಚಕ್ರಬಡ್ಡಿKannada
- 복리Korean
- faenoreLatin
- samengestelde interestDutch
- rentes renteNorwegian
- procent składanyPolish
- juros compostosPortuguese
- interes compusRomanian
- сложные проценты, слоRussian
- ränta på räntaSwedish
- கூட்டு வட்டிTamil
- చక్రవడ్డీTelugu
- ดอกเบี้ยทบต้นThai
- bileşik faizTurkish
- складні відсоткиUkrainian
- کمپاؤنڈ سودUrdu
- lãi képVietnamese
- קאַמפּאַונד אינטערעסYiddish
- 复利Chinese

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# Citation

## Use the citation below to add this definition to your bibliography:

"compound interest." *Definitions.net.* STANDS4 LLC, 2018. Web. 24 Mar. 2018. <https://www.definitions.net/definition/compound interest>.