When we say "Power" of compounding, we're not exaggerating. The compounding effect of a small sum of money invested on a regular basis over a long period of time can result in a large corpus of money.
Many investors overlook the fact that the compounding effect on their investment is a powerful accelerator for increasing wealth and building a large corpus.
The interest you earn on your accrued interest is referred to as the power of compounding. So, if you invest a certain amount of money in a financial instrument and earn interest on it, you will also earn interest on your interest in the later years of investment due to the compounding effect.