What is the meaning of Compounding?

Compounding refers to earning income on your income. For example, on fixed income investments that pay interest over time at periodic intervals,' Compounding' means making interest on your initial investment and also on the interest as it builds up (i. E., earning interest on your interest).

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APABarry Goldsmith. (2010). compounding. Retrieved September 23, 2026, from http://smartdefine.org/compounding/definitions/1150437
ChicagoBarry Goldsmith. 2010. "compounding" http://smartdefine.org/compounding/definitions/1150437 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, compounding, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/compounding/definitions/1150437>.
MLABarry Goldsmith. "compounding" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/compounding/definitions/1150437>
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