Compound interest

{
  "id": "MLC-T-LAW-001131",
  "term": "Compound interest",
  "field": "Law",
  "definition": "The addition of interest to the principal sum of a debt or judgment, so that subsequent interest is calculated on the original principal plus the accumulated interest. In legal proceedings, courts may award compound interest on damages to fully compensate a plaintiff for the loss of use of money over time. State statutes or contractual agreements specify whether interest is simple or compound and dictate the compounding frequency, such as daily, monthly, or annually.",
  "url": "https://mlchart.com/terminology/law/compound-interest/"
}