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.
This allows investors to harness the magic of compound interest over decades. Greg Iacurci, CNBC, 13 Dec. 2024 These figures highlight how compound interest accelerates savings growth, especially with larger amounts and longer timelines—proof that time and consistency are your best allies. Natalie Campisi, Forbes, 12 Dec. 2024 State legislators set the fines and fees, which compound interest. Shannon Green, Orlando Sentinel, 3 Nov. 2024 The gift to the players was part of the financial literacy presentation that explained compound interest and the value of saving money over time. David Ubben, The Athletic, 26 Aug. 2024 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

Dictionary Entries Near compound interest

Cite this Entry

“Compound interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compound%20interest. Accessed 25 Dec. 2024.

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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