Calculating the real interest rate You can calculate the real interest rate by subtracting the rate of inflation from the nominal interest rate. Here's the formula: Real interest rate = nominal ...

Everybody knows what an interest rate is—it’s effectively a percentage of an amount over a year. If your savings account ...

To calculate interest rate ... theory that describes the relationship between inflation and real and nominal interest rates. It asserts that the real interest rate equals the nominal interest ...

To put it simply, interest rates are the cost of borrowing money or the reward for saving it. They are quoted as a percentage ...