Compound Interest
/ˈkɒmpaʊnd ˈɪntrəst/
Definitions
- (n.) Interest calculated on the initial principal and also on the accumulated interest from previous periods.
The loan's compound interest caused the total repayment to increase significantly over time.
Related terms
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Commentary
Compound interest clauses must be clearly drafted to specify compounding intervals and calculation methods to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.