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compounding

noun
ˈkəmˌpaʊndɪŋ

Meaning

The process whereby interest is added to an amount of money and future interest is calculated on the total.
The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

Example Sentences

Compounding interest increases the value of investments over time.

Compounding allows investments to grow exponentially over time.

Synonyms

amplifying, escalating, growth, accumulation, exponential return
Entry 1
amplifying, escalating
Entry 2
growth, accumulation, exponential return

Antonyms

diminishing, reducing, simple interest, loss, depreciation
Entry 1
diminishing, reducing
Entry 2
simple interest, loss, depreciation

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