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compound interest definitions

WordNet (r) 3.0 (2005)

n
1: interest calculated on both the principal and the accrued interest

Merriam Webster's

noun Date: 1660 interest computed on the sum of an original principal and accrued interest

Webster's 1913 Dictionary

2. Participation in advantage, profit, and responsibility; share; portion; part; as, an interest in a brewery; he has parted with his interest in the stocks. 3. Advantage, personal or general; good, regarded as a selfish benefit; profit; benefit. Divisions hinder the common interest and public good. --Sir W. Temple. When interest calls of all her sneaking train. --Pope. 4. Premium paid for the use of money, -- usually reckoned as a percentage; as, interest at five per cent per annum on ten thousand dollars. They have told their money, and let out Their coin upon large interest. --Shak. 5. Any excess of advantage over and above an exact equivalent for what is given or rendered. You shall have your desires with interest. --Shak. 6. The persons interested in any particular business or measure, taken collectively; as, the iron interest; the cotton interest. 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.

Webster's 1913 Dictionary

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. Compound substances are made up of two or more simple substances. --I. Watts. Compound addition, subtraction, multiplication, division (Arith.), the addition, subtraction, etc., of compound numbers. Compound crystal (Crystallog.), a twin crystal, or one seeming to be made up of two or more crystals combined according to regular laws of composition. Compound engine (Mech.), a form of steam engine in which the steam that has been used in a high-pressure cylinder is made to do further service in a larger low-pressure cylinder, sometimes in several larger cylinders, successively. Compound ether. (Chem.) See under Ether. Compound flower (Bot.), a flower head resembling a single flower, but really composed of several florets inclosed in a common calyxlike involucre, as the sunflower or dandelion. Compound fraction. (Math.) See Fraction. Compound fracture. See Fracture. Compound householder, a householder who compounds or arranges with his landlord that his rates shall be included in his rents. [Eng.] Compound interest. See Interest. Compound larceny. (Law) See Larceny. Compound leaf (Bot.), a leaf having two or more separate blades or leaflets on a common leafstalk. Compound microscope. See Microscope. Compound motion. See Motion. Compound number (Math.), one constructed according to a varying scale of denomination; as, 3 cwt., 1 qr., 5 lb.; -- called also denominate number. Compound pier (Arch.), a clustered column. Compound quantity (Alg.), a quantity composed of two or more simple quantities or terms, connected by the sign + (plus) or - (minus). Thus, a + b - c, and bb - b, are compound quantities. Compound radical. (Chem.) See Radical. Compound ratio (Math.), the product of two or more ratios; thus ab:cd is a ratio compounded of the simple ratios a:c and b:d. Compound rest (Mech.), the tool carriage of an engine lathe. Compound screw (Mech.), a screw having on the same axis two or more screws with different pitch (a differential screw), or running in different directions (a right and left screw). Compound time (Mus.), that in which two or more simple measures are combined in one; as, 6-8 time is the joining of two measures of 3-8 time. Compound word, a word composed of two or more words; specifically, two or more words joined together by a hyphen.

Collin's Cobuild Dictionary

Compound interest is interest that is calculated both on an original sum of money and on interest which has previously been added to the sum. Compare simple interest. (BUSINESS)




 


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