compound amount of one

Definition

The amount that one dollar would grow to be if left on deposit with interest allowed to compound. If, for example, a dollar were to be deposited in a bank that paid 8 percent interest with an annual compounding, then after one year, the dollar would grow to $1.08 and after five years, it would have grown to $1.47.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
composition Compound Annual Growth Rate