**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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