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What is compound interest?

Quick Answer

Compound interest is the effect of earning interest on both your original principal and on the interest you've already accumulated. Over decades, it produces exponential growth.

what-is-compound-interest
Warren Team
Updated December 12, 2025
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Important Disclaimer:

The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.

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