Respuesta :
The real interest rate equals the nominal interest rate minus the inflation rate.
An interest rate that has been prorated for inflation is referred to as a "real interest rate." The nominal interest rate is subtracted from the inflation rate to arrive at the real interest rate.
What is Nominal vs. Real Interest Rate?
- When represented as a percentage of the total amount of a loan or investment, interest rates represent the cost of borrowing or the return on saving.
- A nominal interest rate is the sum of the real interest rate and the anticipated inflation rate.
- The actual return on a loan (to the lender) and on a bond is provided by a real interest rate (to the investor).
- Subtract the actual or anticipated rate of inflation from the nominal interest rate to determine the real interest rate.
- The nominal interest rate is the rate that banks, debt issuers, and investment firms advertise for loans and various investments.
- Real interest rates represent the purchasing power of investors. Nominal interest rates can indicate current market and economic conditions.
- The interest rate that banks, debt issuers, and investment companies promote for loans and different types of investments is known as the nominal interest rate.
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