compound-interest
A method of calculating interest in which the interest earned is added to the principal balance, so that interest is earned on both the initial principal and the accumulated interest.
"When saving for retirement, many people choose accounts that offer compound interest."
"The bank explained how compound interest works to help us understand our savings growth."
"By starting to invest early, she benefited greatly from compound interest over the years."
To calculate or accumulate interest on both the principal and the interest that has already been added to the principal.
"The financial app will compound your interest daily to maximize your earnings."
"You can choose to compound your investment monthly or yearly based on your preference."
"It's essential for investors to understand how banks compound interest over time."
Referring to interest that is calculated on the initial principal and also on the interest accrued from previous periods.
"She prefers investing in accounts that offer compound interest rates for better returns."
"The compound interest feature of this investment plan makes it highly appealing."
"Understanding the concept of compound interest is crucial for effective financial planning."