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How to Pronounce "compounding"

word

Definition

Compounding means combining two things together to form something new. It is often used in finance (earning interest on both the initial amount and previous interest) and in language (forming new words by joining two or more words).

Listen in Context

Thanks to compounding, even small investments can grow big over the years.

Compounding helps your savings grow faster.

English has many words formed by compounding.

The effect of compounding increases over time.