Compound interest

Compound interest
Interest In"ter*est, n. [OF. interest, F. int['e]r[^e]t, fr. L. interest it interests, is of interest, fr. interesse to be between, to be difference, to be importance; inter between + esse to be; cf. LL. interesse usury. See {Essence}.] [1913 Webster] 1. Excitement of feeling, whether pleasant or painful, accompanying special attention to some object; concern; a desire to learn more about a topic or engage often in an activity. [1913 Webster +PJC]

Note: Interest expresses mental excitement of various kinds and degrees. It may be intellectual, or sympathetic and emotional, or merely personal; as, an interest in philosophical research; an interest in human suffering; the interest which an avaricious man takes in money getting. [1913 Webster]

So much interest have I in thy sorrow. --Shak. [1913 Webster]

2. (Finance, Commerce) Participation in advantage, profit, and responsibility; share; portion; part; as, an interest in a brewery; he has parted with his interest in the stocks. [1913 Webster]

3. Advantage, personal or general; good, regarded as a selfish benefit; profit; benefit. [1913 Webster]

Divisions hinder the common interest and public good. --Sir W. Temple. [1913 Webster]

When interest calls of all her sneaking train. --Pope. [1913 Webster]

4. (Finance) A fee paid for the use of money; a fee paid for a loan; -- usually reckoned as a percentage; as, interest at five per cent per annum on ten thousand dollars. [1913 Webster]

They have told their money, and let out Their coin upon large interest. --Shak. [1913 Webster]

5. Any excess of advantage over and above an exact equivalent for what is given or rendered. [1913 Webster]

You shall have your desires with interest. --Shak. [1913 Webster]

6. The persons interested in any particular business or measure, taken collectively; as, the iron interest; the cotton interest. [1913 Webster]

{Compound interest}, interest, not only on the original principal, but also on unpaid interest from the time it fell due.

{Simple interest}, interest on the principal sum without interest on overdue interest. [1913 Webster]

The Collaborative International Dictionary of English. 2000.

Look at other dictionaries:

  • compound interest — see interest 5 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. compound interest …   Law dictionary

  • compound interest — Interest computed by applying the simple rate of interest to calculate interest on principal plus interest on successive increments of interest earned in prior periods. American Banker Glossary interest paid on previously earned interest as well… …   Financial and business terms

  • Compound interest — Interest paid on previously earned interest as well as on the principal. The New York Times Financial Glossary * * * compound interest compound interest ➔ interest * * *    The interest amount earned on the original principal and on the… …   Financial and business terms

  • Compound interest — Compound Com pound, a. [OE. compouned, p. p. of compounen. See {Compound}, v. t.] Composed of two or more elements, ingredients, parts; produced by the union of several ingredients, parts, or things; composite; as, a compound word. [1913 Webster] …   The Collaborative International Dictionary of English

  • Compound Interest — Interest that accrues on the initial principal and the accumulated interest of a principal deposit, loan or debt. Compounding of interest allows a principal amount to grow at a faster rate than simple interest, which is calculated as a percentage …   Investment dictionary

  • compound interest — n [U] ↑interest that is calculated on both the sum of money lent or borrowed and on the unpaid interest already earned or charged →↑simple interest …   Dictionary of contemporary English

  • compound interest — n. interest computed on the sum of the principal and the accrued interest: cf. SIMPLE INTEREST …   English World dictionary

  • compound interest — noun uncount interest that is based both on an amount of money that someone has borrowed or saved and on the interest that has been added to it …   Usage of the words and phrases in modern English

  • Compound interest — The effect of earning 20% annual interest on an initial $1,000 investment at various compounding frequencies Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also… …   Wikipedia

  • compound interest — noun interest calculated on both the principal and the accrued interest • Hypernyms: ↑interest * * * noun : interest paid or computed on the combined sum of the original principal of a loan and interest accrued and payable at the end of each… …   Useful english dictionary

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