All terms

Glossary

Compound Interest

Earning returns on your returns. A $10,000 investment at 10% annual return becomes $11,000 after year one, then earns 10% on $11,000 in year two. The growth curve accelerates significantly over decades.

From: Investing

Related terms

Free Weekly Money Guide

One money concept at a time.

Base Camp is a free weekly email that explains money in plain English.

Subscribing creates a free GenHedge account so we can send you the letter. No password needed. By continuing you confirm you are 13 or older and agree to our Terms and Privacy Policy. Unsubscribe whenever you like.

Free forever. Unsubscribe anytime.

Educational definitions. Not financial advice.