compound interest


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

Examples of compound interest in a Sentence

Recent Examples on the Web HOAs are also barred from charging compound interest on overdue assessments. Michael L. Hyman, Miami Herald, 8 Apr. 2024 But the bank unlawfully increased the principal balance amounts due on credit cards and charged compound interest on inflated balances, the plaintiffs claim. Chase Jordan, Charlotte Observer, 25 Mar. 2024 Saving early is key, given the power of compound interest, but many young workers are strapped by student loans and the high cost of living and thus may not feel able to set away funds. Aimee Picchi, CBS News, 20 Mar. 2024 End of carousel Many folks who are wired to save can’t understand those who don’t prioritize building an emergency fund or share their awe at the power of compound interest. Michelle Singletary, Washington Post, 16 Feb. 2024 Some 71% own their homes, according to Redfin, and many still have decades until retirement, giving them plenty of time to put a plan together and still reap the benefits of compound interest. Alicia Adamczyk, Fortune, 15 Dec. 2023 Tu’s philosophy centers around the idea that time, coupled with compound interest, forms the bedrock of financial growth. Laura Begley Bloom, Forbes, 29 Nov. 2023 In solid companies, Mr. Munger and Buffett saw their love of compound interest play out in the form of franchises immune to inflation and with potential for ongoing growth and cash flow. Paul Glader, Washington Post, 28 Nov. 2023 Conversations about credit, investments, and loans, for instance, intersect with lessons on compound interest, matrices, and exponential equations. Jackie Valley, Fortune, 10 Oct. 2023

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.” Dictionary, Merriam-Webster, Accessed 12 Jun. 2024.

Kids Definition

compound interest

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

Legal Definition

compound interest

see interest sense 5

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