compound interest

1. 1.

   interest calculated on both the principal and the accrued interest

   Broaderinterest

Questions about compound interest

What does compound interest mean?

compound interest means "interest calculated on both the principal and the accrued interest".

Is compound interest a common word?

compound interest is banded "Rare" — specialist or archaic — most readers will not have met it. The band comes from how often the word appears in a large corpus of everyday English, not from an editor's impression.