compound interest Synonyms

No Synonyms and anytonyms found

compound interest Meaning

Wordnet

compound interest (n)

interest calculated on both the principal and the accrued interest

compound interest Sentence Examples

1. Compound interest refers to interest calculated not only on the initial principal but also on the accumulated interest from previous periods.
2. When saving for retirement, taking advantage of compound interest can significantly increase the growth of your investments over time.
3. Albert Einstein famously called compound interest the "eighth wonder of the world" due to its remarkable ability to multiply wealth.
4. Understanding the concept of compound interest is crucial for making informed financial decisions.
5. With compound interest, even small, regular contributions to savings or investments can grow substantially over the long term.
6. Banks and financial institutions often offer accounts with compound interest to help customers grow their savings faster.
7. Compound interest can work against you when dealing with debts, as unpaid interest can accumulate and increase your overall repayment amount.
8. The formula for calculating compound interest includes variables such as the principal amount, interest rate, and time period.
9. Investors can use compound interest calculators to estimate the future value of their investments based on different scenarios.
10. Teaching children about the power of compound interest early on can instill good financial habits and help them plan for the future.

FAQs About the word compound interest

What is the meaning of the word compound interest

interest calculated on both the principal and the accrued interest

What are the synonyms of the word compound interest

No synonyms found.

What are the antonyms of the word compound interest

No antonyms found.

What is the usage of word compound interest

Compound interest refers to interest calculated not only on the initial principal but also on the accumulated interest from previous periods.

When saving for retirement, taking advantage of compound interest can significantly increase the growth of your investments over time.

How to use the word compound interest in a sentence?

Albert Einstein famously called compound interest the "eighth wonder of the world" due to its remarkable ability to multiply wealth.

Understanding the concept of compound interest is crucial for making informed financial decisions.