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English definition of “compound interest”

compound interest

noun [U]
 
 
FINANCE interest that is calculated on both the amount of money invested or borrowed and on the interest that has been added to it: Thanks to the power of compound interest, every €1 you invest in your 20s is worth €2 in your 30s and €3 in your 40s. → Compare simple interest
(Definition of compound interest from the Cambridge Business English Dictionary © Cambridge University Press)
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