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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.

Compounding interest increases the value of investments over time.

Compounding allows investments to grow exponentially over time.

amplifying, escalating, growth, accumulation, exponential return

Entry 1

amplifying, escalating

Entry 2

growth, accumulation, exponential return

diminishing, reducing, simple interest, loss, depreciation

Entry 1

diminishing, reducing

Entry 2

simple interest, loss, depreciation

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the cost required for something; money spent on something

extreme tiredness resulting from mental or physical exertion or illness

an arrangement made in advance to secure accommodation, a seat, or service

the act of expressing something clearly in speech or the way in which words are pronounced

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