Define: Compound Interest

UK Accounting Glossary

Definition: Compound Interest


Quick Summary of Compound Interest


When interest is applied to capital and accrued up until that particular date. For example, a £1,000 loan with 20% interest will have a balance of £1,200 after the first year, then £1,440 at the end of the second year.



What is the dictionary definition of Compound Interest?

Dictionary Definition



Full Definition of Compound Interest




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Definition Sources


Definitions for Compound Interest are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 28th December 2018.