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 Meanwhile, if a tight budget is keeping you from investing for retirement or another big-picture goal, remember just how valuable time in the market and compound interest can be. —

Tribune News Service, The Mercury News, 2 July 2024 Thanks to the effect of compound interest, the profits from these funds could amount to around a 100 percent capital gain after just 15 years. —

Mark Blyth, Foreign Affairs, 11 Aug. 2014 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 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

See more words from the same year

Dictionary Entries Near compound interest

compound infusion of senna

compound interest

compound-interest method

See More Nearby Entries

Cite this Entry

Style

“Compound interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compound%20interest. Accessed 27 Jul. 2024.

Copy Citation