compound interest

Definition from Nolo’s Plain-English Law Dictionary

Interest paid at least in part on accumulated interest. For example, if interest on a savings account is compounded monthly, the depositor is paid interest on the amount deposited after the first month. After the second month, the depositor receives interest on the total amount in the account: the amount deposited plus the interest paid in the first month.

Definition provided by Nolo’s Plain-English Law Dictionary.