Power of compounding can be experienced, when your earnings start generating more earnings. You receive interest not only on your original investments, but also on any interest and dividends that accumulate. This way, your money can grow faster and faster, as years go by.
Note – This is a hypothetical example, and actual returns would be different, depending on change in interest rates and other factors.
Additional Note – If you are amazed by this concept of money working for you (wow!), then you might also like to read about the power of doing nothing in stock markets and story of an Indian multibagger.