compounding Definition

compounding

Definition

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

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Related Terms

compound annual return - More

compound growth rate - More

Rule of 72 - More

continuous compounding

discrete compounding

Annual Percentage Yield

annual return

APY

effective annual interest rate

annualize

Related Terms on BusinessDictionary

effective rate of interest
nominal rate of return
processing time
chaotic system
continuous compounding
nominal rate of interest

annual return
modified duration
compound
discounting
total return

Popular 'Accounting' Terms

current ratio
equity
working capital
asset
EBITDA

revenue
net income
negotiable
net profit
net worth

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compounding is ...

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Nearby Terms

Compound Annual Growth Rate
compound annual return
compound arbitrage
compound growth rate
compound interest
compounding
compounding frequency
compounding period
comprehensive coverage
comprehensive income
comprehensive insurance

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