Compound Interest


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Related to Compound Interest: simple interest

Compound Interest

Interest generated by the sum of the principal and any accrued interest.

Interest is normally compounded on a daily, quarterly, or yearly basis. The more often interest is compounded, the larger the principal will grow and the greater the interest the new principal will produce.

compound interest

n. payment of interest upon principal and previously accumulated interest which increases the amount paid for money use above just simple interest. Thus, it can increase more rapidly if compounded daily, monthly or quarterly. The genius physicist Albert Einstein called compound interest man's "greatest invention." Most lenders agree. (See: interest, promissory note)

COMPOUND INTEREST. Interest allowed upon interest; for example, when a sum of money due for interest, is added to the principal, and then bears interest. This is not, in general, allowed. See Interest for money.

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30 percent of Americans who finance their homes through bank financing could not answer the question on compound interest correctly.
Answers to questions about the compound interest topic were considered "correct" if either item was answered correctly.
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In light of the utter lack of evidence indicating that compound interest is a recognized remedy under Iranian law, we reverse that portion of the award," the appeals court said.
In such circumstances, the court concluded, "an award of simple interest is unreasonable and, therefore, unconstitutional" The court ordered that a new judgment be entered awarding compound interest on Central's damages.
And when it finally was scheduled in 2009, the water district added an amendment to the requested action, seeking payment of compound interest on any money lost during the delay.
This means that for a large proportion of government spending, compound interest needs to be added to the cost.
My favorite is the power of compound interest, which was lost in the get-rich-quick schemes of the recent past, but the basic math is undeniable
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Banks and various trusts pay compound interest at regular intervals: this means that interest is paid not only on the original sum deposited, but also on previous interest payments.
A direct tax case involving Sempra Metals held that compound interest was a better measure of the cost to the taxpayer than simple interest in such circumstances.
56 percent and the average compound interest rate was 10.