<prompt> Human: Do VTFs have compound interest? I have the 2055 fund and I dont quite see howif it has compounding interest because as I understand it, the gains made are based on the value of the stock. Am I missing something here?  <response>: The idea of compound interest is that your interest or earnings will also accumulate interest interest on interest. Thus speeding up the accumulation of interest. You can read more about it hereSo yes, your investment in the 2055 fund can and will have compound interest. Interest is usually associated with bonds, but interest can also equal stock price increases and dividends. Good Luck! 