Definitions for

**"compound interest"****Related Terms:**Simple interest, Compounded interest, Annual interest rate, Capitalized interest, Deferred interest mortgage, Daily interest, Add-on interest, Capitalization of interest, Accrued, Simple interest loan, Prepaid interest, Annual debt service, Accrued interest, Principal and interest, Interest accrual rate, Capitalization, Capitalizing interest, Interest payable, Accrue, Exact interest, Aer, Compounding, Capital, Interest-only loan, Interest-only, P & i, Annual equivalent rate, Penalty, Rule of 78, Interest rate, Principal balance, Total monthly payment, Interest-only payment, Interest only loans, Interest, Principal, Interest cover, Per-diem interest, Interest only mortgages, Cpr, Interest adjustment, Psa, P&i, Effective interest rate, Interest only loan, Rate, Terms, Monthly payment, Capital and interest

Interest calculated on principal and accumulated interest. Simple interest is...

When you invest money in a retirement fund you will earn interest. Compound interest (as opposed to simple interest explained below) means that you earn interest, not only on your investment, but also on your investment plus the interest earned in the previous years, meaning that you earn interest on interest.

Interest paid on the original principal and also on the unpaid interest that has accumulated.

The investor's best friend. One hundred pounds invested in the stock market in 1918 would be worth just over £1,000,000 today, according to calculations done by Barclays Capital, a London merchant bank. (No, that's right. Not a misprint.)

Interest paid on an initial investment (principal), as well as on the accrued interest.

Interest charged not only to the principal sum but also on interest amounts charged in a preceding period.

Compound interest is interest that is calculated on the basis of the principal sum plus any interest that has accrued. It pays interest on interest. Compound interest can be contrasted with simple interest which is interest calculated on the basis of the principal sum only. A simple way of working out compound interest is to use compound factors. The general formula for compound factor F for n years at an interest rate i is: Fn,I = (1 + i)n Where i is the interest rate in decimal form. So the three year compound factor for an interest rate of 10% is:(1 + 0.1)3 = 1.331 Multiplying the initial investment, say, £100, by the compound factor gives us £133.10. This is the future value of the initial investment.

Paying interest on both the principal and accumulated unpaid interest. In other words, paying interest on interest. See also simple interest.

Interest which is added to the principal sum, and which earns interest in addition to the principal sum.

When the interest you earn on an investment is added to form the new base on which future interest is calculated, it is said to be compound interest. Without compounding, you earn simple interest, and your investment doesn't grow as quickly.

The effect of interest on interest. Assuming interest is re-invested total returns include interest on that interest.... more on: Compound interest

Interest paid on interest previously earned as well as being paid on principal.

Interest on Interest. This is a powerful investment technique that can exponentially grow your wealth in all areas.

A method of calculating interest, which allows interest payments to be added to the principal to accelerate capital growth.

Interest added to the principle and it begins to earn interest.

simply speaking, interest is earning interest. It is the reinvested amount, principal plus interest, that is put back into the annuity.

The interest and accrued interest paid on the principal balance of a mortgage.

the calculation of the new amount A when the original amount (the principal), P, of money is subjected to interest being calculated on interest at the end of a period according to the following formula A = P(1+i)n.

Interest which is paid on accumulated interest as well as the original principal invested.

Interest paid to the initial deposit plus the accumulated interest.

Calculated by adding the interest to the principal and calculating the interest at the end of agreed conversion periods.

Computed interest which is added to the principal to arrive at a new principal balance. Interest is then assessed on the new principal balance.

Means calculating interest upon interest. Payments on mortgages can also be compounded usually either semi-annually or monthly. Interest only payments are compounded monthly payments.

Compound interest means that each time interest is paid, it is added to or compounded into the principal and thereafter also earns interest. For example, a new deposit balance is estimated each day for daily compounding. Common compounding periods are daily, monthly, quarterly, annually and continuously. The more frequent the compounding, the higher the effective rate of interest.

This is interest calculated by taking any interest that was earned in a given period â€“ typically 30 days and adding it to the principal â€“ or â€˜coreâ€™ amount. This amount is used to calculate the next period's interest on this "compounded" total amount.

Interest paid on accrued interest as well as on principal.

Interest computed on principal plus interest accrued during the previous periods of the investment

The process of paying interest on interest in an investment.

Interest paid on both accumulated interest and original principal

is interest which is allowed to remain with the investment capital and thereby becomes merged or compounded with the principal. It is a very effective way of growing an investment since the amount working for the investor grows at a faster and faster rate â€“ compound interest has been humorously called the â€œ8th Wonder of the Worldâ€. For example, if $10,000 is invested in a capital guaranteed (or managed) insurance bond paying, say 10% p.a. it will double in value after 7-8 years â€“ refer â€œRule 72â€ below.

Interest paid on interest from previous periods in addition to principal. Essentially, compounding involves adding interest to principal and any previous interest in order to calculate interest in the next period. Compound interest may be figured daily, monthly, quarterly, semi-annually or annually.

Interest paid on the principal of a loan as well as on the previously accumulated interest.

Interest that is calculated on the original principal plus all interest accrued to that point in time. Since interest is paid on interest as well as the amount borrowed, the effective interest rate is greater than the nominal interest rate. The compound interest rate method is often used by banks and savings institutions in determining interest they pay on savings deposits "loaned" to the institutions by the depositors.

Interest credited daily, monthly, quarterly, semi-annually, or annually on both principal and previously credited interest.

Interest paid on accumulated interest as well as on principal.

Interest income attributable to previously accrued interest that has been left on deposit, or interest paid on interest.

Interest on a loan is added to the principal owing at regular intervals becoming part of the principal that earns further interest. (see Interest)

Interest earned on a principal sum plus interest earned from an earlier time period. Compound interest can happen daily, quarterly, annually, or on another basis. Go to Top

Interest calculated on both the principal amount invested and the previously accumulated unpaid interest.

Interest earned on previously accumulated interest plus the original principal. Most spread sheets can calculate this easily for you but for the curious, the formula is C = P(1 + r/n)n, where C=compound amount, P=original principal, r=annual interest rate, n=total number of periods over which interest is compounded.

Interest charged at specific intervals within the loan term with earned interest being reinvested.

Computed by applying the stated percentage rate both to the original amount invested and to the accumulated interest of previous periods.

Interest paid on money you have in the bank and on the interest that the money has earned.

Income earned on income that was previously earned. For example, if you invest $20,000 at 8%, you would earn $1,600 interest the first year. In the second year, you would earn an additional $128 of interest on the $1,600 interest of the first year as well as another $1,600. That $128 is called compound interest.

Interest paid on a loan's principal and on any unpaid interest. Compound interest (or capitalization) increases the amount of money the borrower must repay and increases monthly payments.

the interest earned (charged) on an amount of money and added to the principal to earn (charge) more interest in the following year

Interest that is payable not only on the original loan amount (the principal) but also on the interest accumulated on the principal.

Interest added to interest previously earned on a principal balance. If $100 is deposited in a bank account at a 10% interest rate compounded annually, the depositor will be credited with $110 at the end of the first year and $121 at the end of the second year. That extra $1, which was earned on the $10 interest from the first year, is the compound interest. Interest can also be compounded on a daily, quarterly, or other basis. The more frequently interest is compounded, the higher the effective yield.

The interest paid on the principal balance of a mortgage plus accrued interest.

Interest payable on capital, interest, and its accumulated interest.

interest computed on both the principal and accrued interest.

Interest that is earned not only on the principal but also on the interest already earned.

Compound interest is sometimes described as the eighth wonder of the world because of its dramatic effect over extended periods. For example, Microsoft shares have shown an annual rate of appreciation of 44 per cent since the company was floated in 1985. Not many investors would realise that, as a result, an initial investment of just $2,000 at the issue price would now be worth $1,000,000.

Interest computed on the sum of the original principal and accrued interest

Interest charged on interest not paid when due that is added to principal and thereafter bears interest at the contracted for interest rate. Conforming Home Loan The current confirming loan limit as of December 2005 is $417,000 and below.

Interest charged not only to the principle sum but also on the interest amounts.

Interest earned on both the principal and the interest it has previously earned.

Interest paid on the original principal balance, and on the accumulated and unpaid interest.

Interest calculated not only on the original principal, but also on the interest already accrued.

Interest earned not only on the initially invested sum but also on the accumulated interest of previous periods.

Interest paid on the principal loan as well as on all interest accrued against the principal.

The interest amount paid or earned on the original principal plus the accumulated interest. With interest compounding, the more periods for which interest is calculated, the more rapidly the amount of interest on interest and interest on principal builds. Compounding annually means that there is only one period annually when interest is calculated. See Simple interest.

Interest paid on previously earned interest as well as on the principal. For example, interest earned in one period earns additional interest during each subsequent time period.

Interest calculated on unpaid interest as well as on unpaid principal.

interest earned both on the principal investment and also on the previously-earned interest.

Accrued interest when earnings for a specific period are added to principal. Interest for the following period is computed on the principal plus accumulated interest.

Interest paid on the original principal and on interest accrued from time it became due.

Interest paid on original principal and on the accrued and unpaid interest, which has accumulated.

When you earn interest not only on your initial investment, but also on any interest you have already earned.

Interest earned periodically that is added to the borrowed principal. The interest is calculated both on the borrowed principal and on the accumulated interest. In fact, compound interest is interest added to interest previously earned.

A method of crediting interest where the interest is added to the accumulated fund, so that the interest itself earns interest. See also: SIMPLE INTEREST.

Interest calculated on the amount invested or borrowed, as well as the interest already earned or owing on that amount.

Is the interest earned on an investment plus the interest that was earned earlier.

Apply interest on the capital plus all interest accrued to date. Eg. A loan with an annually applied rate of 10% for 1000 over two years would yield a gross total of 1210 at the end of the period (year 1 interest=100, year two interest=110). The same loan with simple interest applied would yield 1200 (interest on both years is 100 per year).

Interest is paid on the initial investment (principal) when it falls due and interest earned on the combined amount. (see also Take advantage of compounding earnings)

Interest which is computed upon the principal sum plus accrued interest.

Interest paid on both the principal invested and the interest previously earned.

interest on an investment, like a savings account, that is calculated not only on the money you originally invested, but also on any interest the investment has already earned.

Interest rates are usually compounded - so the amount paid on savings is based on the capital plus the interest paid so far (provided you have not taken anything out of the account). This also works for loans - so the amount you owe can increase dramatically over quite a small time.

Interest that is computed on the principal and on the accrued interest. Compound interest may be computed continuously, daily, monthly, quarterly, semiannually, or annually.

Interest payable on the principal loan amount and accrued interest.

Asset growth based on re-investment of earnings. It reflects the interest you earn on both your principal and any interest that has been added to that amount already. It works a bit like the "snowball" effect. In the beginning, your assets increase gradually. Over time, as you continue to re-invest your earnings, the growth becomes more rapid. The longer you allow that snowball to roll, the faster it will grow.

Interest accrued and credited on an investment option at periodic intervals. The amount is added to the principle and previous interest earned or charged. Essentially, interest is earned or charged on top of interest.

Interest computed on the principal plus the interest accumulated previously to the date of compounding.

Interest calculated on both the original capital and on the accumulation of past interest amounts.

Accrued and unpaid interest on original principal which has accumulated.

An interest method that calculates interest on interest earned in prior periods.

An interest rate that is applicable when interest in succeeding periods is earned not only on the initial principal but also on the accumulated interest of the previous period.

Compound interest is interest on the money lent, plus interest on any interest already added to the loan.

The interest that is earned during a period when calculated as a percentage of the capital sum plus any interest that has been earned in previous periods. Compound interest assumes that previous interest payments are added to the capital sum and thus increase it.

Interest computed on the accumulated unpaid interest as well as on the original principal.

money paid on money earned as interest in the past.

Compound interest is interest that is paid not only on the principal, but on all previously earned interest as well. Interest that is earned on your cash holdings in the Marketocracy competition is compounded.

Interest determined by first establishing the rate of interest for the current period, adding that figure to the original principal, and then calculating the interest for the next period by using this new adjusted amount in place of the original principal.

This is interest earned on interest and can make a big difference to the value of long-term savings.

Interest calculated on the principal and interest already paid.

Interest paid on accumulated interest and on the original principle

Interest earned on interest. When interest is earned on an investment and that interest is reinvested, it becomes part of the principal of that investment. The next interest calculation is based on this increased principal. Compound interest results in a higher future value than simple interest.

Compound interest is interest earned on interest and makes a huge difference to the value of long term savings. Say you've invested £100, which is earning 10% interest each year. Year 1, you earn 10% on £100 = £110 Year 2, instead of earning another 10% on your £100, you earn 10% on £110 = £121 Year 3, you earn 10% on £121 = £133.10 And so on, so longer you leave it, the more you benefit from compounding.

Interest is earned on the principal amount and the accumulated interest of prior periods.

Interest paid both on principal and on interest earned during previous compounding periods. Essentially, compounding involves adding interest to the sum of principal and any previous interest in order to calculate interest in the next period.

Interest that is not drawn but added to the capital to increase earnings.

Interest earned on interest. Interest earned on principal over a given period that is then added to the original principal to become the new principal upon which interest is earned during the new period, and so on, from period to period.

Interest computed on the principal and the unpaid accumulated interest of a loan.

Interest paid on both the original investment and accrued interest.

interest charged on interest and on the mortgage debt. The amount of interest charged for a period, for instance over six months, is added to the balance to create a new amount on which to calculate interest.

Interest charged not only on the principal sum but also on interest amounts charged in preceding periods which accumulate as new principal. In interest law the words compounded, calculated, computed, converted, or convertible are considered to by synonymous terms.

Interest payable on income and its accumulated interest. On the contrary, simple interest which is paid only on the principal.

The interest rate that takes into account the effect of the interest that has already been earned and added to the capital amount. Compounding has a snowball-like effect over the long term and can count for the major proportion of investment growth over 20 years, for example.

Interest charged on both the principal amount of a loan as well as on the interest charged in a preceeding period.

Interest earned on principal plus interest that was earned earlier.

The process by which income is earned on income that has previously been earned. The end value of the investment includes both the original amount invested and the reinvested income.

Interest paid on interest. This occurs when interest paid on an investment is then added to the amount of the original investment. As a result, interest payments in the future are based on the original investment plus an ever-increasing accumulation of interest added to it.

Interest earned on both the principal amount and any interest already accrued.

Interest calculated on the principal and any interest that has accumulated to date.

Interest which, during the life of the loan is charged or calculated at regular intervals and if not immediately paid will, in subsequent period, earn interest itself.

The interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan.

Interest which is calculated not only on the principal but also on the accumulated interest remaining on deposit.

The interest on a loan is added to the principal sum and you pay interest on the accumulated interest as well as the principal sum.

E-LOAN CDs and Savings accounts compound interest daily. This refers to any interest earned on an account holder's principal balance, as well as any prior interest.

Interest charged or paid on the principal and the accumulated interest, unlike Simple Interest which is paid only on the principal.

interest computed on the sum of the principal and the interest previously paid.

The form of interest calculation that adds unpaid interest to the loan principal. [[email protected]

A method of interest calculation where, in each period, interest is calculated on both the principal and the interest previously accrued.

interest that's paid on the original amount deposited, and also on any interest that's been earned in previous periods (e.g.: in year 1, the bank pays you $5 interest on your $100 deposit; in year 2, it pays you interest on $105)

Interest that is due on the principal amount including any accumulated interest.

Interest earned not only on an original investment, but on its accrued earnings as well.

The interest on the interest. Not the interest on the original amount of the loan, but rather interest on the amounts of interests which have accrued.

Interest that is paid on accumulated interest, as well as on the capital invested, i.e. if you reinvest the interest you earn on an investment, you earn interest on your interest as well as the capital amount over time.

periodic interest is automatically reinvested so that interest is earned on the original investment plus accumulated interest

Interest earned not only on your original investment, but on your accrued earnings as well.

Interest computed on the balance of a loan, in which the balance includes all unpaid interest.

Interest which is computed on the principal and any unpaid accumulated interest. Also see Simple Interest.

As opposed to simple interest. The accumulation of interest on a loan over time where interest is charged not only on the principal of the loan but also on all interest accrued against the principal to the end of the last compound period.

( intérêt composé). The interest earned on a principal amount, including interest earned in an earlier period. A deposit (or loan) compounded at 10 per cent annually will double in about seven years if no money is taken out (or paid back).

Interest which is calculated not only on the initial principal but also the accumulated interest of prior periods.

Interest paid on the prior periods' interest as well as on the original deposit. In contrast, simple interest is paid only on the initial deposit.

Interest due on both the original principal balance and any unpaid interest. Savings accounts often apply compound interest to the money you deposit. You earn interest on top of interest that you have already gained. So, if you put $100 in your savings account at 6% annual interest you will earn $6.00 at the end of the year. The next year you will collect interest on the total amount, $106.00.

Interest paid on the principal and itâ€(tm)s accrued interest.

A method of crediting interest in which interest is earned on interest.

The interest paid on the principal amount plus interest which has accrued and been added to the total.

Reinvestment of each interest payment on money in vested, to earn more interest.

interest charged on interest (page 106).

Interest calculated not only on the original principal (def. 3) that was saved but also on the interest earned earlier and left in the account .

Interest earned on an investment at periodic intervals and added to the original amount of the investment. Future interest payments are then calculated and paid at the original rate but on the increased total of the investment. This is really interest paid on interest.

Interest paid on the principal (see Principal) and on interest earned previously. (Compare Simple interest.)

Interest computed on both original and accrued interest.

Interest that is determined by adding the interest earned in the current period to the principal and computing the next period's interest on this "compounded" total amount.

Interest earned on interest. For example, if you invest â‚¬100 which earns ten percent compound interest each year, you earn ten percent in year one. This gives you a total of â‚¬110. In year two, you earn ten percent on â‚¬110, which equals â‚¬11 giving you a total of â‚¬121. Similarly, compound interest is the interest that is regularly added to a loan. If you borrow â‚¬100 at a compound interest of ten percent each year, you will owe an extra â‚¬10 in year one. This takes your debt up to â‚¬110. In year two, you will own ten percent of â‚¬110, which equals â‚¬11 â€“ taking your loan total to â‚¬121.

Method of calculating interest on the principal as well as on previous earned interest. Compounding increases the value of investments over time.

interest calculated on the principal and interest already accrued.

Interest computed not only on the principal but also on previously accumulated interest.

interest added to the principal and itself begins to earn interest

Interest that is calculated on the balance of your account, which includes the interest earned previously. Compare with: simple interest

Interest earned on both the principal and on interest earned earlier (interest on interest).

Interest accrued on the sum of the amount of a deposit and uncalled interest upon the expiry of each quarter or another term specified in a bank deposit agreement.

Interest earned on money that is invested over a period of time that is added to the original amount invested (the principal) and interest is then paid on the entire amount. Over a long time compound interest can be a good way to increase your savings.

an interest yield calculated on a balance increased by each interest payment

Interest that is paid at specific intervals which is added to, and becomes part of the principal amount.

In, for example, a deposit account, this is where interest is added to both capital and the accrued interest from time to time. The longer a customer leaves an investment the more advantage they can make of compound interest. E.g. In Year 1 a customer is paid 10% on his/her £100 investment. At the end of Year 1 this investment is worth £110. In Year 2 with compound interest taken into account the customer now earns 10% on £110, giving him/her £121 by the end of Year 2. In Year 3 they earn 10% on £121 giving a grand total of £133.10.

Interest paid on your initial investment, and then also on the interest as it builds up. Over a period of several years, compounding can have a dramatic effect in making your investment grow.

The type of interest that is earned on both the original principal amount and on the interest accumulated from earlier periods. Contrast with simple interest.

Payment of interest, not only on principal investment, but also on the interest accumulated in previous periods.

Interest on both the original principal and on interest accrued.

Interest charged not only on the principal sum but also on interest amounts charged but not paid in preceding periods that accumulate as new principal.

When interest is earned both on the principal and any interest already accumulated, thus increasing the total return.

Compound interest is interest earned on principal as well as interest paid on previously earned interest.

Interest calculated on interest from previous periods as well as on principal.

Interest on interest. For example, if $1,000 is deposited in an account earning interest of 6% per year the account will earn $60 in the first year. In year two the account balance will earn $63.60 (not $60.00) because 6% interest is earned on $1,060. Similarly the bank paying the interest will incur interest on interest. To Top

Interest paid not only on the initial principal, but also on any interest accumulated from one period to the next. The more frequently interest is compounded, the higher the realized rate of interest.

Compound interest, is the measurement of interest whereby any interest that becomes payable, is added to the original principal. In subsequent periods, new interest is calculated , not only on the original principal, but also on the interest that has been added. The more frequently interest is compounded, the faster the principal grows.

Compulsories Conclusion of missives

**Keywords:**compromise

Compromise

**Keywords:**option

Compound option Compounding