Definition of Compound Interest

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Definitions from Black's Law Dictionary: 2nd Edition and Ballentine's Law Dictionary as are available for each term in each dictionary.
  • Compound interest
    Ballentine's Law Dictionary

    Interest upon accrued interest added to interest upon the principal sum.

  • Compound Interest
    Black's Law Dictionary: 2nd Edition

    Interest upon interest, i. e., when the interest of a sum of money is added to the principal, and then bears interest, which thus becomes a sort of secondary principal. Camp v. Bates, 11 Conn. 487; Woods v. Rankin, 2 Heisk. (Tenn.) 46; U. S. Mortg. Co. v. Sperry (C. C.) 26 Fed. 730.