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.
For brevity’s sake just the obvious will be stated here: the power of compound interest is the most powerful force in all of markets and economics. John Tamny, Forbes.com, 6 Apr. 2025 The secret weapon is compound interest, where your money earns returns, and those returns generate even more money. Melissa Houston, Forbes, 4 Mar. 2025 However, these figures highlight the advantage of starting early, as compound interest can lead to exponential growth the longer your money is invested. Mike Winters, CNBC, 28 Feb. 2025 Think of inclusive leadership as compound interest for your organization. Kara Dennison, Sphr, Cprw, Forbes, 19 Feb. 2025 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

Cite this Entry

“Compound interest.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/compound%20interest. Accessed 16 Apr. 2025.

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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