How does compounding work?


Let's say I put $200 in a stock and it goes up 100% over time. The $200 turned into $400. But why when you do the math $200+25%+25%+25%+25% it comes out to $488. How does compounding work?

Can someone explain please thanks. Also what do you guys think of the ticker $SOPA? It's a growth stock with big potential in my opinion.


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