A process whereby the value of an investment increases exponentially over time due to compound interest.

Use compounding in a sentence

I knew there was some compounding going on and I decided to look further to see if I could find anything of interest.

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The compounding benefit of the project was demonstrated during the meeting by the graphical representation of the interest we were earning.

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Some people claim that compounding makes it possible to get rich while leaving money sitting in the bank, but they forget that inflation is also an exponential process.

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discrete compounding effective annual yield