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Compounding: meaning, definitions and examples

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compounding

 

[ kษ™mหˆpaสŠndษชล‹ ]

Noun
Context #1 | Noun

finance, linguistics

Compounding refers to the process of generating earnings on an asset's reinvested earnings. In finance, it is the method whereby interest is added to the principal sum of a loan or deposit so that, from that moment on, the interest that has been added also earns interest. In linguistics, compounding is the formation of a compound word by combining two or more existing words.

Synonyms

aggregation, amalgamation, combination

Examples of usage

  • The compounding of interest can significantly increase your savings.
  • Linguists study compounding to understand the evolution of language.
  • The concept of compounding is essential in understanding how investments grow over time.

Translations

Translations of the word "compounding" in other languages:

๐Ÿ‡ต๐Ÿ‡น composto

๐Ÿ‡ฎ๐Ÿ‡ณ เคธเค‚เคฏเฅ‹เค—

๐Ÿ‡ฉ๐Ÿ‡ช Verbindung

๐Ÿ‡ฎ๐Ÿ‡ฉ penggabungan

๐Ÿ‡บ๐Ÿ‡ฆ ะบะพะผะฟะพะฝัƒะฒะฐะฝะฝั

๐Ÿ‡ต๐Ÿ‡ฑ kompozycja

๐Ÿ‡ฏ๐Ÿ‡ต ๅˆๆˆ

๐Ÿ‡ซ๐Ÿ‡ท composition

๐Ÿ‡ช๐Ÿ‡ธ composiciรณn

๐Ÿ‡น๐Ÿ‡ท bileลŸim

๐Ÿ‡ฐ๐Ÿ‡ท ํ•ฉ์„ฑ

๐Ÿ‡ธ๐Ÿ‡ฆ ุชุฑูƒูŠุจ

๐Ÿ‡จ๐Ÿ‡ฟ kompozice

๐Ÿ‡ธ๐Ÿ‡ฐ kompozรญcia

๐Ÿ‡จ๐Ÿ‡ณ ๅคๅˆ

๐Ÿ‡ธ๐Ÿ‡ฎ kompozicija

๐Ÿ‡ฎ๐Ÿ‡ธ samanblanda

๐Ÿ‡ฐ๐Ÿ‡ฟ า›าฑั€ะฐัั‚ั‹ั€ัƒ

๐Ÿ‡ฌ๐Ÿ‡ช แƒ™แƒแƒ›แƒžแƒแƒ–แƒ˜แƒชแƒ˜แƒ

๐Ÿ‡ฆ๐Ÿ‡ฟ tษ™rkib

๐Ÿ‡ฒ๐Ÿ‡ฝ composiciรณn

Etymology

The word 'compounding' comes from the Latin 'componere,' which means 'to put together.' This term transitioned through Middle English, where 'compounden' meaning 'to combine' was the norm. The financial senses of compounding gained traction in the late 19th century, as the concept of compound interest became more widely understood among the investing public. In linguistics, 'compounding' was adopted to describe the way new words are formed by combining existing words, with roots tracing back to the same Latin origins. Over time, the word has maintained its core meaning of putting elements together, whether in finance or language.

Word Frequency Rank

With rank #15,552, this word belongs to specialized vocabulary. While not common in everyday speech, it enriches your ability to express complex ideas.