<-- Real %
Given a nominal interest rate of 4.8%
and an inflation rate of 1% Calculate the real interest rate: Show relation of (n), (i), and (r)1 + n = (1 + i)(1 + r) Divide each side by (1 + i):
Solve for r
| 1 + r = | 1 + 0.048 | | | 1 + 0.01 |
1 + r = 1.0376237623762 r = 1.0376237623762 - 1 r = 0.03762 Convert Real Rate to a %Real Percent = 0.03762 * 100% Real Percent = 3.762 Final Answer Real Rate of Interest = 3.76%
You have 2 free calculationss remaining
What is the Answer?
Real Rate of Interest = 3.76%
How does the Inflation and Real Rate of Interest Calculator work?
Free Inflation and Real Rate of Interest Calculator - Calculates Real rate of Interest, Inflation, and nominal interest rate before inflation.
This calculator has 3 inputs.
What 1 formula is used for the Inflation and Real Rate of Interest Calculator?
1 + n = (1 + i)(1 + r) For more math formulas, check out our Formula Dossier
What 5 concepts are covered in the Inflation and Real Rate of Interest Calculator?
- inflation
- a general increase in the prices of goods and services in an economy
- inflation and real rate of interest
- interest rate
- the proportion of a loan that is charged as interest to the borrower or proportion of principal credit given to a depositor
- noinal interest rate
- percent
- a specified amount in or for every hundred. one part in every hundred.
n% = n/100
Inflation and Real Rate of Interest Calculator Video
Tags:
Add This Calculator To Your Website
|