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.

References in periodicals archive ?
Suggest you know a magical way that will enable your child to make their acorns grow - this is through the miracle of saving and compound interest.
Once cited as the 'eighth wonder of the world' by Albert Einstein who also said, 'those that understand it, earn it; those that do not, pay it', compound interest is a relatively low-intensity way of reliably maturing your investment over the long term.
Shalchi said the figure is just an example to show how people can use the power of compound interest to their advantage.
Answers to questions about the compound interest topic were considered "correct" if either item was answered correctly.
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.
COMPANY AGAINST THE ISLAMIC REPUBLIC OF IRAN, THE DISTRICT OF COLUMBIA CIRCUIT AFFIRMS IN PART AND REVERSES IN PART A DISTRICT COURT'S CONCLUSION THAT COMPOUND INTEREST IS A REMEDY UNDER IRANIAN LAW AND REMANDS THE CASE FOR RECALCULATION OF THE AWARD BASED ON SIMPLE INTEREST
The previous two columns reviewed the financial miracles of compound interest and tax-deferred compound interest.
The Appeals Court instead granted the former owner, Central Water District, the right to compound interest.
Minuit could have converted his trinkets and beads into $24 and deposited it in a bank account paying 7% compound interest net after taxes?
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
Considering compound interest as one of the wonders of the world, the retired cardiologist discusses documents required for financial planning, investment options, financing the children's college education, and staying healthy to minimize medical bills.