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. (February 15, 2019). https://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/compound-interest
"Compound Interest." West's Encyclopedia of American Law. . Retrieved February 15, 2019 from Encyclopedia.com: https://www.encyclopedia.com/law/encyclopedias-almanacs-transcripts-and-maps/compound-interest