interest compounded annually
noun[U]
FINANCEukusamethodofcalculatingandaddinginterestto aninvestmentorloanonceayear,ratherthan for anotherperiod:
If youborrow$100,000 at 5%interestcompoundedannually, after the firstyearyou wouldowe$5,250 on aprincipalof $105,000.