复利 (fù lì) — (noun) compound interest

Definition

Compound interest: interest calculated on the principal plus all accumulated interest, so it grows faster over time than 単利 (dānlì, simple interest). A key concept in finance and long-term investing.

noun
compound interest

Examples

  • 复利。
    Yín háng yòng fù lì jì suàn cún kuǎn de lì xī.
    The bank uses compound interest to calculate the interest on deposits.
  • ，复利。
    Cháng qī tóu zī zhōng, fù lì de xiào guǒ fēi cháng míng xiǎn.
    In long-term investments, the effect of compound interest is very obvious.
  • 复利。
    Liǎo jiě fù lì néng bāng zhù nǐ gèng hǎo dì guǎn lǐ cái wù.
    Understanding compound interest can help you manage your finances better.

Origin

Compound word
构词法gòucífǎ
偏正piānzhèngModifier + head

The first part narrows down the second: it says what kind of thing the head is.

复fùrepeated
利lìinterest

复 points to repeated or multiple gains, and 利 is interest or profit; the word names interest that is added back so it can grow further.

Characters in this word

Most characters — around four in five — are built this way: one part hints at the meaning, the other at the pronunciation.

This origin belongs to the traditional form 復; 复 is its simplified writing.

The simplified 复 stands for more than one traditional character. In most words (复习, 恢复) it is 復; in others (复印, 复杂) (答复, 反复) it is 複 or 覆.

Meaning part形符xíngfú
彳彳chìwalk
Sound part声符shēngfú
复
复fù復fù
Same sound today

The traditional form 復 combines 彳, a walking part, with 复, a sound part, to show walking back and forth.

Open 复 →

Two or more meaningful parts placed together so that their meanings combine into a new one.

利 combines 禾 (grain) and 刀 (knife), showing a knife used to cut grain.

Open 利 →

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