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Financial encyclopediaReviewed 2026-10-23

Compound Interest

Interest paid on principal and on accumulated interest.

Sources and references ↗
PROFILE / FACT FILE

Concept at a glance

Term
Compound Interest [1]
Subject area
Investor.gov glossary [1]
Jurisdiction / scope
US regulatory and investor-education context [1]
Primary reference
SEC · Investor.gov [1]

Definition

Interest paid on principal and on accumulated interest. [1]

How the concept works

Interest paid on principal and on accumulated interest. [1]

Frequently asked questions

What does Compound Interest mean in the cited reference?

Interest paid on principal and on accumulated interest. [1]

Sources and review dates

  1. US SEC · Investor.gov — Compound Interest ↗

Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.

Content preparation: source-based compilation with AI assistance. See methods and attribution. Named sources identify the underlying records; no individual expert review is claimed.