compound interest

Definition of "compound interest"
  1. Interest that is calculated both on the initial principal and on the interest that has previously been added
How to use "compound interest" in a sentence
  1. To maximize her savings, Jane chose a savings account with compound interest.
  2. The credit card company charges compound interest which makes the debt grow rapidly if not paid off.
  3. The power of compound interest can significantly boost investment returns over the long term.

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