Compounded

/kəmˈpaʊndɪd/ verb

Definition

Made worse or more complicated by adding additional problems, or combined multiple elements together.

Etymology

From Old French 'componre' meaning 'to put together,' from Latin 'componere' (com- 'together' + ponere 'to place'). Used in finance since the 17th century to describe interest growing on interest.

Kelly Says

Compound interest is called 'the eighth wonder of the world' because it's the same mathematical process whether problems get worse or money grows better—it's acceleration through repeated multiplication.

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