3 ms·
By growth compounding I simply mean that the 2 % interest you earn today you earn not only on your starting capital, but also on the interest earnings of last y
by kqr 4y ago
By growth compounding I simply mean that the 2 % interest you earn today you earn not only on your starting capital, but also on the interest earnings of last year.
Another way to phrase it is that you reinvest your winnings.