Compound Interest - Definition - Law Dictionary Home Dictionary Definition compound-interest

Definition :

Compound interest, 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. It is ordinarily not recoverable at law, see Fergusson v. Fyffe, (1840) 8 Cl & F 121, and Wrigley v. Gill, (1906) 1 Ch 165. See INTEREST.