Mathematics
What makes compound interest grow over time?
Quick fact
Compound interest means earning returns on both the original money and previous returns.
Why this is interesting
Time can transform small amounts of money into significant wealth.
Read the full explanation
Understanding What makes compound interest grow over time?
The longer money remains invested, the greater the effect of compounding becomes.
A deeper explanation
Compound growth is one of the fundamental principles behind long-term investing. Because returns are added back into the investment, future growth occurs on a larger base. This process can accelerate wealth creation over long periods.