Compound Interest Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Compound Interest, written in plain English, along with examples of how it is used.

What is Compound Interest?

Interest calculated upon the principal amount added to the interest on it that is simple interest is called compound interest.Everytime interest is compounded the principal will grow and will help in earning more interest.Interest is compounded on daily,quarterly or yearly basis.