Compound Interest is the most prevalent form of calculating interest on loans, deposits, and investments. It is a form of interest on the principal amount plus all the interest accumulated to date. In simple interest, the fixed interest gets calculated in every period on the principal amount. B...
Definition of Compound interest Compound interest 2. Participation in advantage, profit, and responsibility; share; portion; part; as, an interest in a brewery; he has parted with his interest in the stocks. 3. Advantage, personal or general; good, regarded as a selfish benefit; profit; benef...
From Longman Business Dictionaryˌcompound ˈinterest[uncountable]interest calculated on both a sum of money lent and on the unpaid interest already earned or charged on that money→comparesimple interest→interest Pictures of the day What are these?
The meaning of COMPOUND INTEREST is interest computed on the sum of an original principal and accrued interest.
We can earn interest on the interest from the money we save.
The meaning of INTEREST is a feeling that accompanies or causes special attention to something or someone : concern. How to use interest in a sentence.
Derivation of Compound Interest Formula The compound interest formula is derived from thesimple interestformula. The formula for simple interest is the product of the principal, time period, and rate of interest (SI = Ptr/100). Before looking into to derivation of the formula for compound interes...
compound interest(noun) conflict of interest(noun) prime interest rate(noun) self–interest(noun) simple interest(noun) special interest(noun) vested interest(noun) 1interest/ˈɪntrəst/noun pluralinterests Britannica Dictionary definition of INTEREST ...
to compound a crime or felony. to pay (interest) on the accrued interest as well as the principal: My bank compounds interest quarterly. to increase or add to: The misery of his loneliness was now compounded by his poverty. Electricity.to connect a portion of the field turns of (a direc...
Example of Using a Compound Option For example, a company bids to complete a large project. If they win the bid, they will need financing for $200 million for 2 years. However, the formula they use in the calculation takes current interest rates into consideration. Therefore, the company ...