## Enter 2 out of 3 inflation items

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

Real Rate of Interest = ** 3.76%**

### What is the Answer?

Real Rate of Interest = ** 3.76%**

### How does the Inflation and Real Rate of Interest Calculator work?

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

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