Compound Interest Rate

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Compound Interest Rate

The interest rate on a loan or other fixed-income instrument in which interest previously paid is included in the calculation of future interest. For example, if one has a certificate of deposit for $1,000 with a 3% compound interest rate (compounded monthly), the interest paid is $30 (3% of $1,000) in the first month, $30.90 (3% of $1,030) in the second month, and so forth. The more frequently interest is compounded, the higher the yield will be on the instrument.
References in periodicals archive ?
Is it ey asked pac because you have to have pay-days to get it, or with compound interest rates rising to 4,214 per cent that would mean they'd eventually owe more than the national debt of Scotland?
The big problem is credit-card debt because it charges high compound interest rates.
Of the one out of five Americans who passed, the respondents did best on questions which gauged their understanding of mortgage and compound interest rates, and the rate of return on a particular investment over time.