**Business / Taxes / Compound Interest:** When the interest you earn on an investment is added to form the new base on which future interest accumulates, it is compound interest. For example, say you earn 5% compound interest on $100 every year for five years. You'll have $105 after one year, $110.25 after two years, $115.76 after three years, and $127.63 after five years. Without compounding, you earn simple interest, and your investment doesn't grow as quickly. For example, if you earned 5% simple interest on $100 for five years, you would have $125. A larger base or a higher rate provide even more pronounced differences. Compound interest earnings are reported as annual percentage yield (APY), though the compounding can occur annually, monthly, or daily.

**Compound Adjective Synonyms**: composite, blend, synthesis, combination, consolidation, parasynthesis, parathesis, mixture, amalgam, alloy, merging, merger, mix

**Compound Verb Synonyms**: blend, merge, coalesce, combine, unite, fuse or also fuze, come or go together

**Compound Noun Synonyms**: put together, combine, mix, concoct, compose, make (up), formulate, blend

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**Interest Noun Synonyms**: attention, attentiveness, concern, regard, curiosity, scrutiny, notice, engagement

**Interest Adjective Synonyms**: concern, significance, importance, weight, moment, note, consequence

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Business / Finance / Interest Payments: Interest earned on reinvestment of each interest payment on money invested. See: compound interest. MORE

Business / Taxes / Periodic Interest Rate: The periodic interest rate, sometimes called the nominal rate, is the interest rate a lender charges on the amount you borrow. Lenders are also required to tell you what a loan will actually cost per MORE

Business / Accounting / Simple Interest: Interest applied to the original sum invested (as opposed to compound interest ). Eg. 1000 invested over two years at 10% per year simple interest will yield a gross total of 1200 at the end of the pe MORE