Compound growth rate 


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Compound growth rateSee: Compound Annual Growth RateCompound growth rate Similar MatchesCompound interestCompound interestThe process by which interest earned on an investment is added back to the amount invested, so increasing the amount of 'principal' on which further interest will be earned in future years.Compounding is sometimes described as the miracle of investing. The fact is that if you reinvest income in your portfolio, you will end up with a much larger amount than if you spend the income as you go along because of the effect of compounding. But to allow compounding to work its magic, you have to start young.Albert Einstein, when asked what he considered to be mankind's greatest invention, replied 'Compound interest!' CompoundingCompoundingThe 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. Compound reversionary bonusCompound reversionary bonusA with profits life assurance bonus, normally added annually to the policy, which is based on the profits of the life company's investments.The compound reversionary bonus is normally calculated on the sum assured (or basic sum assured) plus bonuses to date and is payable at the maturity of the policy or prior death. Once declared, reversionary bonuses are guaranteed. Compound optionCompound optionOption on an option. Compound interestCompound interestInterest paid on previously earned interest as well as on the principal. Further SuggestionsCompound Annual Growth RateCompound Annual Return Compound interest Compound tariff Compounding frequency Continuous compounding Realized compound yield compound annual growth rate Compounding period Discrete compounding Simple compound growth method 
