compound interest
noun[U]
ukusFINANCE
interestthat iscalculatedon both theamountofmoneyinvestedorborrowedand on theinterestthat has beenaddedto it:
Thanks to thepowerofcompoundinterest, every €1 youinvestinyour20s isworth€2 inyour30s and €3 inyour40s.
Compare
simple interest