Compounded

Compounded is the past participle of the verb 'compound,' which refers to the act of combining two or more elements, topics, or substances to form a composite whole. In finance, Compounded interest refers to the process where the interest earned is added to the principal, leading to increased returns over time. Compounding can also apply to problems or concepts, indicating that they have been made worse by the addition of related issues.

Compounded meaning with examples

• The financial planner explained that investing early allows your savings to be Compounded, maximizing your wealth over the years through interest that earns more interest.
• In chemistry class, we learned how certain elements, when Compounded, can create powerful reactions, illustrating the importance of understanding molecular interactions.
• The teacher noted that the issues in the community were Compounded by years of neglect and lack of resources, thus requiring a multifaceted solution to address them.
• His stress was Compounded by external factors such as job loss and family issues, making it harder for him to cope effectively with daily challenges.
• The Compounded regulations surrounding the project made the team’s task more complex, as they had to navigate numerous legal channels to move forward.