compounding

Interest earning interest

Compounding is combining elements to form something new or more complex.

In language, compounding joins words to create new ones: *blackbird*, *smartphone*, *mother-in-law*.

In finance, compounding is earning returns on previous returns—interest on interest—which accelerates growth over time: The magic of compounding turned modest savings into a fortune.

In pharmacy, compounding is preparing customized medications by mixing ingredients.

The word also describes making something worse: His lies only compounded the problem.

linguistics

morphology

Study of structural forms

root · prefix · suffix · blend · portmanteau · neologism · lexeme · agglutination · inflection · concatenation

worsening

exacerbating

Making something worse

amplifying · magnifying · multiplying · accumulating · snowballing · cascading · piling on · deepening · heightening · complicating

finance

principal

Chief school administrator

returns · dividends · interest rate · growth · yield · capital gains · portfolio · savings · retirement · 401(k)

chemistry

mixture

Combined but unbonded substances

catalyst · reagent · solvent · precipitate · concentration · emulsification · homogenization · solute · solubility · distillation

pharmacy

formulation

Devised mixture or expression

bioavailability · prescriptions · capsules · creams · ointments · suppositories · tinctures · suspensions · sterile · nonsterile

Categories
Opposites
financial growth mechanism

compoundingsimple interest

Interest on principal alone

flat rate · fixed interest · linear growth

combination/aggregation

compoundingseparating

Dividing into parts

dividing · parting · decomposing · splitting · dissecting

problem escalation

compoundingalleviating

Making less severe

mitigating · reducing · lessening · relieving · simplifying

Phrases
Family

compound, compose, component, composition, composite, composer, decompose, composing, compounds

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Rated G