# What is compound interest Quizlet

Compound interest is interest that's paid on what you deposit in the bank + interest on your interest.

## What is compound interest easy definition?

Compound interest is when you earn interest on both the money you've saved and the interest you earn.

## What does it mean to compound interest quizlet?

Compound interest. The interest which is added on to the initial investment, so that this will itself gain interest in subsequent time periods.

## What is compound interest called?

Compound interest, also called "compounding interest," is the interest on the initial investment as well as the accrued interest on that investment.

## What is compound interest and why is it important?

A simple definition.\n\n Compound interest makes your money grow faster because interest is calculated on the accumulated interest over time as well as on your original principal. Compounding can create a snowball effect, as the original investments plus the income earned from those investments grow together.

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