[jenny91]

That doesn't make sense, could you please elaborate? What do you mean by "growth compounds"? Do you mean that the value of 10% more is the same across all wealth levels, in which case you're implicitly assuming logarithmic utility?

[kqr]

By growth compounding I simply mean that the 2 % interest you earn today you earn not only on your starting capital, but also on the interest earnings of last year.

Another way to phrase it is that you reinvest your winnings.