Lesson60 seconds
What is Compound Interest?
Interest calculated on plus interest already added.
Step 1 of 9
Simple Definition
Compound interest means interest is charged (or earned) on the growing balance that includes earlier interest.
Explanation level
Tap a persona to hear the same idea in a totally different voice.
Try “Like I'm 5™” for a picture-book version - not the grown-up wording above.
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