📊compounding

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