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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 process of earning interest on a loan or other fixed-income instrument where the interest can itself earn interest. That is, interest previously calculated is included in the calculation of future interest. For example, suppose someone had the same certificate of deposit for $1000 that pays 3%, compounding each month. The interest paid is $30 in the first month (3% of $1,000), $30.90 in the second month (3% of $1,030), and so forth. In this situation, the more frequently interest is compounded, the higher the yield will be on the instrument. See also: Amortization, Time value of money, Simple interest.


Compounding occurs when your investment earnings or savings account interest is added to your principal, forming a larger base on which future earnings may accumulate.

As your investment base gets larger, it has the potential to grow faster. And the longer your money is invested, the more you stand to gain from compounding.

For example, if you invested $10,000 earning 8% annually and reinvested all your earnings, you'd have $21,589 in your account after 10 years.

If instead of reinvesting you withdrew the earnings each year, you would have collected $800 a year, or $8,000 over the 10 years. The $3,589 difference is the benefit of 10 years of compound growth.

References in periodicals archive ?
paucimobilis bacteremia that was associated with contaminated intravenous fentanyl prepared at an out-of-state compounding pharmacy.
Health Dimensions Compounding Pharmacy has been providing customized prescriptions to doctors and patients since 1996.
Harbor Compounding Pharmacy is dedicated to the continuing medical education of healthcare practitioners, with a common goal of preventing chronic health issues and continuing the revolution in healthcare.
Harbor Compounding Pharmacy had earned this accreditation in December 2012, and this approval had extended their accreditation through December 11, 2018.
About Royal Care Pharmacy, Inc: Royal Care Pharmacy (RCP) is a full-line and a state-of-the-art compounding pharmacy.
Hotze Pharmacy, a compounding pharmacy specializing solely in bioidentical hormones, supports the rights of compounding pharmacies like Franck's, and believes that regulations and mandates for compounding pharmacies should remain in the hands of the state pharmacy boards.
Diplomat's current compounding pharmacy services include the preparation of personalized medications for patients and compounding pharmacists who work with prescribers to customize a medication to meet a patient's specific health needs.
full-line and a state-of-the-art compounding pharmacy, today announced that Dr Emil Haldey, PharmD, the Company's President, has been invited to speak at the Grand Rounds at Metropolitan Hospital, Physical Medicine and Rehab Department.
A compounding pharmacy creates customized medications for individual patients in response to a licensed practitioner's prescription.
Acquisition of company's third compounding pharmacy extends sales reach to an additional 2,000 ophthalmologists and 800 urologists
The Tribune obtained a copy of McCraw's "threat assessment," a one-page March 7 letter he wrote to TDCJ Executive Director Brad Livingston, which said that "some of the threats" to the Woodlands Compounding Pharmacy near Houston, "should be taken seriously.
com)-- In response to news about the presence of pharmaceuticals contaminating the water supply and teenage abuse of prescription drugs, Health Dimensions Compounding Pharmacy is now offering a new drug take back program to help its patients safely dispose of medicines that may be dangerous to others and to the environment.