Compound Interest

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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 ?
This paper has demonstrated that there is a continuous compounding term which is appropriate when the effective periodic compound rate is known.
There are several studies underway to establish the performance of the FTX for continuous compounding of rubber compounds.
Significantly higher throughput in continuous compounding of TPVs is also claimed.
The continuous compounding action of the twin-screw mixing process is said to improve quality control and produce a uniform hot-melt adhesive.
It can handle continuous compounding tasks in both laboratories and pilot plants.
Davis-Standard sources agree that the number of process steps performed in continuous compounding has steadily increased.
The two newest lines are not for intrusion molding, but rather for continuous compounding and extrusion of profiles up to 12 in.
Figure 3 illustrates the screw configuration optimized for the performance of the continuous compounding experiments on the different powder rubber types.
All these parts are made of long-glass polypropylene by some combination of continuous compounding linked in more or less automated fashion with compression or injection molding.

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