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Glossary   >   C   >   "Compounding" Definition            Compounding The process of accumulating the time value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period. The ability of an asset to generate earnings that are then reinvested and generate their own earnings. Glossary    Dictionary Search (powered by Google) WWW ITLOCUS.COM GLOSSARY.ITLOCUS.COM Translate a web page (powered by Google)      to German Spanish French Italian Portuguese Japanese Korean Chinese

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Compounding \ The process of accumulating the time value of money forward in time. For example, interest earned in one period earns additional interest during each subsequent time period.

The ability of an asset to generate earnings that are then reinvested and generate their own earnings.