Interest generated by the sum of the principal and any accrued interest.
Interest is normally compounded on a daily, quarterly, or yearly basis. The more often interest is compounded, the larger the principal will grow and the greater the interest the new principal will produce.
"Compound Interest." West's Encyclopedia of American Law. . Encyclopedia.com. (December 10, 2018). https://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/compound-interest
"Compound Interest." West's Encyclopedia of American Law. . Retrieved December 10, 2018 from Encyclopedia.com: https://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/compound-interest