# compound interest in Finance topic

From Longman Dictionary of Contemporary Englishcompound interestˌcompound ˈinterest noun [uncountable] 🔊 🔊 BFinterest that is calculated on both the sum of money lent or borrowed and the unpaid interest already earned or charged → simple interest

Examples from the Corpus

compound interest• The main problem with the simple yield to maturity, though, is that it does not take into account compound interest.• The arithmetic of compound interest is such that delays in making contributions to trust funds tend to be quite costly.• But the precise figure would be 10.7 per cent because of the effect of compound interest.• The present-value formula may be derived directly from the compound interest formula.• Present-value calculations provide a simple means of quantifying this time value of money by using the reciprocal of the compound interest formula.• The discounting calculation is the reverse of the compound interest calculation.• Calculators and Personal Computers Very few people actually use compound interest and present-value tables to solve time value of money problems.• The wolfish landlord used this chance to demand the usurious compound interest of 50% for three years.
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