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LSDefine

Simple English definitions for legal terms

compound interest

Read a random definition: internal-security act

A quick definition of compound interest:

Compound interest is when you earn interest on the money you already earned from an investment. This means that your investment grows faster over time. It's different from simple interest, where you earn the same amount of interest every time. Compound interest is important in finance and trading. You can calculate the total cost of a loan with compound interest using a formula. For example, if you lend someone $1,000 with a monthly interest rate of 10%, they would owe you $2,593.74 after ten months with compound interest.

A more thorough explanation:

Compound interest is a type of interest that is earned on both the initial investment and any interest that has been accumulated over time. This means that the interest earned on an investment is added to the principal amount, and the new total amount earns interest again. This cycle continues, resulting in a larger return on investment over time.

For example, if you invest $1,000 in a savings account with a 5% annual interest rate, after one year, you will have earned $50 in interest. However, if you leave that interest in the account and continue to earn interest on the new total of $1,050, you will earn even more interest the following year. This compounding effect can result in significant returns over time.

Another example is a loan with compound interest. If you borrow $10,000 with a 10% annual interest rate and a term of 5 years, you will owe $16,386 at the end of the term. This is because the interest is added to the principal amount each year, resulting in a larger amount owed.

Compound interest is an important concept in finance and investing, as it allows for exponential growth over time. It is important to understand the effects of compound interest when making investment or borrowing decisions.

compos mentis | compound question

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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