korkokorotusta
Korkokorotusta refers to the concept of interest on interest, a fundamental principle in finance and economics. When interest is earned on an initial sum of money, and then the earned interest is added to the principal, subsequent interest calculations will be based on this larger amount. This compounding effect means that the total amount of interest earned over time grows at an accelerating rate.
The process of korkokorotusta is often illustrated with examples of savings accounts, loans, and investments. In
The frequency of compounding significantly impacts the effectiveness of korkokorotusta. Interest can be compounded annually, semi-annually,