what is the meaning of compound interest?

South Korea
November 19, 2007 6:27pm CST
i wonder what is the exactly meaning of compound interest.if possible,please give me an example. thanks!
1 response
jbrooks0127
@jbrooks0127 (2324)
• United States
20 Nov 07
In simple terms, and that is the only way I can tell you, it means when a bank gives you interest for your savings account it is calculated not only on the money you have in savings but also the interest accumulated.