Compound interest

 

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Compound interest

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

Compound interest

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

Compound interest

The process by which interest earned on an investment is added back to the amount invested, so increasing the amount of 'principal' on which further interest will be earned in future years.Compounding is sometimes described as the miracle of investing. The fact is that if you reinvest income in your portfolio, you will end up with a much larger amount than if you spend the income as you go along because of the effect of compounding. But to allow compounding to work its magic, you have to start young.Albert Einstein, when asked what he considered to be mankind's greatest invention, replied 'Compound interest!'



Similar Matches

Compound option

Compound option

Option on an option.


Discrete compounding

Discrete compounding

Compounding the time value of money for separate time intervals.


Compound growth rate

Compound growth rate

See: Compound Annual Growth Rate


Compound Annual Return

Compound Annual Return

See: Compound Annual Growth Rate


Simple compound growth method

Simple compound growth method

Calculating a growth rate by relating terminal value to initial value and assuming a constant percentage annual rate of growth between the two values.


Further Suggestions

Compound tariff
compound annual growth rate
Compounding frequency
Realized compound yield
compound reversionary bonus
Continuous compounding
Compounding
Compound Annual Growth Rate
Compounding period


 
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