🇰🇷Korean Source WordCode: KO

복리

Pronunciation / Transliteration: bongni

🇬🇧 Direct English Meaning:
Compound interest/ˈkɒm.paʊnd ˈɪn.trɪst/
nounCEFR B2 (Upper)Top #4500 frequency
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🇰🇷 Example Sentence in Korean:

"복리는 장기 투자에서 자산을 불리는 핵심 요소입니다."

Comprehensive Definitions & Senses

2 senses
As noun
  1. 1

    Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

    "Over a long period, compound interest can significantly increase the growth of your retirement savings."
  2. 2

    The exponential growth effect resulting from continuous addition of accumulated gains back into the base asset.

    "Learning every day creates a powerful compound interest effect on your overall skills."

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Linguistic Origin & Historical Etymology

The term derives from the Middle English 'compounen' (to mix or combine, from Latin 'componere') combined with 'interest' (from Medieval Latin 'interesse', meaning compensation for damage or loss, later expanding to money paid for the use of borrowed money). Financial application emerged in late medieval European banking practices to describe the addition of interest to the principal sum of a loan or deposit so that the added interest also earns interest thereafter.

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