compound interest

noun

: interest computed on the sum of an original principal and accrued interest

Examples of compound interest in a Sentence

Recent Examples on the Web Make sure to start saving for retirement early so your money has more time to grow with the power of compound interest. Danielle Chemtob, Forbes, 18 Oct. 2024 Making the case for saving and investing Use this opportunity to explain how compound interest works, showing them how even small amounts can grow over time. Winnie Sun, CNBC, 13 Oct. 2024 Even modest, consistent investments can benefit from compound interest, significantly increasing your wealth in the long run. True Tamplin, Forbes, 4 Oct. 2024 Stories of rollover IRAs wallowing in cash for decades, and missing out on hundreds of thousands of dollars in compound interest, are the stuff of nightmares, some financial advisers said. Daniel De Visé, USA TODAY, 2 Oct. 2024 See all Example Sentences for compound interest 

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'compound interest.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1660, in the meaning defined above

Time Traveler
The first known use of compound interest was in 1660

Dictionary Entries Near compound interest

Cite this Entry

“Compound interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compound%20interest. Accessed 31 Oct. 2024.

Kids Definition

compound interest

noun
: interest paid or to be paid both on the principal and on accumulated unpaid interest

Legal Definition

compound interest

see interest sense 5

Last Updated: - Updated example sentences
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