Compounded Meaning: Definition, Examples, and Translations
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compounded
[kษmหpaสndษd ]
Definitions
financial terms
Compounded refers to the process of adding interest to the principal amount of a loan or deposit, so that from that moment on, the interest that has been added also earns interest. This process can significantly increase the amount of money earned or owed over time.
Synonyms
Examples of usage
- Interest on the savings account is compounded monthly.
- He learned that his investment would be compounded annually.
- The loan amount is compounded quarterly.
- Her interest is compounded, leading to a larger sum over the years.
describing mixtures
Compounded can also describe something that is made up of two or more parts or elements. This term is often used in chemistry and pharmacology to indicate a mixture of different substances.
Synonyms
blended, composed, constituted.
Examples of usage
- The compounded medication was tailored for the patient's specific needs.
- He used a compounded formula to enhance the solution.
- The chemist prepared a compounded mixture for the experiment.
Translations
To see the translation, please select a language from the options available.
Interesting Facts
Science
- In chemistry, compounds are substances formed when two or more different elements combine, like how water is made from hydrogen and oxygen.
- Compounded medicines are mixtures prepared by combining various ingredients to achieve a specific therapeutic effect.
- The concept of compounds is essential in pharmacology, where drugs often consist of multiple active ingredients working together.
Finance
- In finance, compounded interest refers to earning interest on both the initial principal and the accumulated interest from previous periods.
- This means that money can grow faster over time compared to simple interest, which is calculated only on the original principal.
- Albert Einstein famously called compounded interest the 'eighth wonder of the world' due to its powerful effect on wealth accumulation.
Linguistics
- In language, a compound word combines two or more words to create a new meaning, such as 'toothbrush' or 'basketball.'
- Compounding is a common morphological process in many languages, allowing for rich and expressive vocabulary.
- Understanding compounds helps learners grasp language structure and encourages creativity in word formation.
Cultural Perspectives
- Many cultures use the idea of compounding in storytelling, where multiple narratives overlap to create a richer experience.
- In cooking, compounded flavors from different ingredients create complex tastes, illustrating the importance of combinations in culinary traditions.
- The concept of compounding is often seen in art, where different styles and techniques can be combined to produce innovative works.
Origin of 'compounded'
Main points about word origin
- The word originates from the Latin 'componere,' meaning 'to put together.'
- It entered Middle English as 'compounden' in the late 14th century, reflecting the idea of combining elements.
- The prefix 'com-' means 'with' or 'together,' while 'pound' comes from the Latin 'ponere,' meaning 'to place.'
The term 'compounded' originates from the Latin word 'componere', which means 'to put together'. This Latin word is a combination of 'com-', meaning 'together', and 'ponere', meaning 'to place'. The usage of 'compound' in English dates back to the 14th century, initially referring to the combining of elements or substances. Over the centuries, the meaning of the word expanded into various fields, including finance, where it describes the growth of investments through compounded interest. In chemistry, it refers to the combination of different elements to form a new substance. The modern usage encompasses these definitions, showcasing the versatility of the term in different contexts.
Word Frequency Rank
Position #9,591 indicates this is an advanced-level word. While not essential for basic communication, it will enhance your ability to understand and create more nuanced content.
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