Compound Interest

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Compound Interest.

The addition of interest to the principal sum of a loan or deposit.  Or, interest on your interest.  This interest calculated on the initial principal also includes all of the accumulated interest from previous periods.  Interest can be compounded on any schedule, from continuous to daily to semi-annually.  This results in an exponential growth of the principal sum.