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English definition of “compound”

compound

adjective
 
 
/ˈkɒmpaʊnd/ FINANCE
used to describe a system of calculating interest in which it is paid on both the amount of money invested or borrowed and on the interest that has been added to it: The investment has grown $1,000 into $3,552 over five years, a compound annual return of 28.6%.
(Definition of compound adjective from the Cambridge Business English Dictionary © Cambridge University Press)
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