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How to Calculate Compounding on a Lump Sum at a Given Interest Rate

By Motley Fool Staff – Updated Apr 23, 2025 at 12:57 PM

Key Points

  • Compounding increases savings exponentially by reinvesting earnings.
  • Calculate compounding on a lump sum using initial amount, rate, and time.
  • Long-term investing significantly amplifies the end value of investments.
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