compound interest


Definition of 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 Even a small amount each month can add up if given enough time to let compound interest work its magic. David Rae, Forbes, 25 May 2021 This money will grow over time because of compound interest. Julia Wuench, Forbes, 21 June 2021 Saving any amount can put you significantly ahead in reaching your retirement goals, thanks to compound interest. Jazmin Goodwin, CNN, 21 June 2021 Implicit in these four words lies the powerful concept of compound interest. Chris Carosa, Forbes, 22 May 2021 Like compound interest, age gaps start small and then their significance keeps growing. Avivah Wittenberg-cox, Forbes, 12 May 2021 In 1683, Swiss mathematician Jacob Bernoulli discovered the constant e while solving a financial problem related to compound interest. Avery Thompson, Popular Mechanics, 2 Mar. 2021 And calculating damages over centuries quickly runs into numbers in the trillions of dollars, when compound interest is included. Bruce Bartlett, The New Republic, 26 Feb. 2021 The lender, meanwhile, is billing Gutierrez for taxes and insurance, as well as compound interest on the debt, with an unpaid tab now in excess of $100,000. Steve Lopez Columnist, Los Angeles Times, 19 Dec. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'compound interest.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of compound interest

1660, in the meaning defined above

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Time Traveler for compound interest

Time Traveler

The first known use of compound interest was in 1660

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Dictionary Entries Near compound interest

compound infusion of senna

compound interest

compound-interest method

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Statistics for compound interest

Last Updated

1 Sep 2021

Cite this Entry

“Compound interest.” Dictionary, Merriam-Webster, Accessed 23 Sep. 2021.

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More Definitions for compound interest

compound interest


English Language Learners Definition of compound interest

: interest paid both on the original amount of money and on the interest it has already earned

compound interest

Legal Definition of compound interest

— see interest sense 5


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