Compound interest is interest added to the principal of a deposit or loan so that the added interest also earns interest from then on. This addition of interest to the principal is called compounding. A bank account, for example, may have its interest compounded every year: in this case, an account with $1000 initial principal and 20% interest per...
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The effect of interest on interest. Assuming interest is re-invested total returns include interest on that interest....
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Interest paid (earned) on any previous interest earned, as well as on the principal borrowed (lent).
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Interest paid on previously earned interest as well as on the principal.
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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 Y...
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The interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan.
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Interest calculated on the principal sum of a debt, plus any interest that has accrued in previous periods. Each time interest is added, the total becomes the new sum on which subsequent interest is calculated.
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Interest calculated by computing the rate against the original capital plus reinvested interest each time the interest becomes due. When simple interest is calculated, only the interest on the...
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Interest calculated upon the principal amount added to the interest on it that is simple interest is called compound interest.Everytime interest is compounded the principal will grow and will help in earning more interest.Interest is compounded on daily,quarterly or yearly basis.
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Apply interest on the capital plus all interest accrued to date. Eg. A loan with an annually applied
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Interest credited daily, monthly, quarterly, semi-annually, or annually on both principal and previo
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The rate of growth of a figure, compounded over some period of time.
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Interest which is calculated on not only the the initial loan, but also on the accumulated interest
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The process by which interest earned on an investment is added back to the amount invested, so... <a target=_blank href='http://www.finance-glossary.com/terms/compound-interest.htm?id=285&ginPtrCode=00000&PopupMode=false' title='Read full definition of compound interest'>more</a>
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Interest paid at least in part on accumulated interest. For example, if interest on a savings account is compounded monthly, the depositor is paid interest on the amount deposited after the first month. After the second month, the depositor receives interest on the total amount in the account: the amount deposited plus the interest paid in the firs...
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[
n] - interest calculated on both the principal and the accrued interest
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Interest paid on the principal of a loan as well as on the previously accumulated interest.
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noun interest calculated on both the principal and the accrued interest
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Interest calculated by computing the rate against the original capital plus reinvested interest each time the interest becomes due. When simple interest is calculated, only the interest on the original capital is added
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interest paid on both the principal and on accrued interest.
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