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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
At the same time, delinquencies have steadily increased, due in large part to average credit card APRs remaining above 22%, which can cause unpaid balances to balloon quickly due to compound interest charges. Angelica Leicht, CBS News, 17 Nov. 2025 Bottom line Understanding and harnessing the power of compound interest is the key to financial freedom. Zev Fima, CNBC, 5 Nov. 2025 Running has taught me to have total trust in the compound interest gained from steady day-by-day work. Nicholas Thompson, The Atlantic, 23 Oct. 2025 Over time, compound interest helps turn even modest contributions into meaningful long-term gains. Alejandra Rojas, Forbes.com, 16 Sep. 2025 See All Example Sentences for compound interest

Word History

First Known Use

1660, in the meaning defined above

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

Cite this Entry

“Compound interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compound%20interest. Accessed 20 Nov. 2025.

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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