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



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Full Definition of Compound Interest



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Compound Interest FAQ's



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Compound Interest. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 17, 2019 https://payrollheaven.com/define/compound-interest/.
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Compound Interest. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/compound-interest/ (accessed: September 17, 2019).
American Psychological Association (APA):
Compound Interest. PayrollHeaven.com. Retrieved September 17, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/compound-interest/

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