Invertext Online Technical Dictionary

compound interest

phrase  

capitalizar a interés compuesto

Definition 1

Add the interest accruing in the first period to the principal and use the sum of the two, principal and interest, to calculate the interest accruing in the second period, repeating the process for each successive period.

Source: Invertext


Context: Compound interest is the concept of adding accumulated interest back to the principal, so that interest is earned on interest from that moment on. The act of declaring interest to be principal is called compounding (i.e. interest is compounded).

Source: "compound interest",

Appears in the following subjects

Banking