Compound Interest

Compound Interest is an interest accumulated from a principal sum and previously accumulated interest. It is the result of reinvesting or retaining interest that would otherwise be paid out, or of the accumulation of debts from a borrower.

Sources:

Consumer Financial Protection Bureau. An official website of the United States government publishers. Retrieved from: https://www.consumerfinance.gov/ask-cfpb/how-does-compound-interest-work-en-1683/

Chambers, Ephraim, ed. (1728). "Interest". Cyclopædia, or an Universal Dictionary of Arts and Sciences (1st ed.). James and John Knapton, et al.