Real rate - Revision history

Doug: Add links.

2023-12-20T20:13:29Z

Add links.

← Older revision		Revision as of 20:13, 20 December 2023
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	== See also ==		== See also ==
	* [[Fisher Effect]]		* [[Fisher Effect]]
			* [[Inflation]]
	* [[Nominal rate]]		* [[Nominal rate]]
			* [[PCE inflation]]
	* [[Real]]		* [[Real]]

	[[Category:The_business_context]]		[[Category:The_business_context]]
	~~[[Category:Corporate_finance]]~~

2020-03-24T16:45:23Z

Categorise.

← Older revision		Revision as of 16:45, 24 March 2020
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	* [[Nominal rate]]		* [[Nominal rate]]
	* [[Real]]		* [[Real]]

			[[Category:The_business_context]]
			[[Category:Corporate_finance]]

2016-01-15T19:33:40Z

Improve calculations.

← Older revision		Revision as of 19:33, 15 January 2016
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	Real rate = ( ( 1 + Nominal rate ) / ( 1 + Inflation rate ) ) - 1		Real rate = ( (1 + Nominal rate) / (1 + Inflation rate) ) - 1


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	The Real rate of return is:		The Real rate of return is:

	= ( 1.06 / 1.03 ) - 1		= (1.06 / 1.03) - 1

	= 0.0291		= 0.0291

2016-01-14T14:59:26Z

Expand for money terms etc.

← Older revision		Revision as of 14:59, 14 January 2016
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	A real terms rate - often abbreviated to 'real rate' - is one which has been restated to exclude the effects of inflation.		A real terms rate - often abbreviated to 'real rate' - is one which has been restated to exclude the effects of inflation.

	The relationship between the Real rate, the Nominal rate and the Inflation rate is:		Items, such as rates, which have ''not'' been adjusted for inflation are often known as 'money terms' rates, 'nominal terms' rates, or 'nominal' rates.


			The relationship between the Real terms rate, the Nominal rate and the Inflation rate is:

2016-01-14T14:55:37Z

Punctuation and spacing.

← Older revision		Revision as of 14:55, 14 January 2016
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	A real terms rate - often abbreviated to 'real rate- is one which has been restated to exclude the effects of inflation.		A real terms rate - often abbreviated to 'real rate' - is one which has been restated to exclude the effects of inflation.

	The relationship between the Real rate, the Nominal rate and the Inflation rate is:		The relationship between the Real rate, the Nominal rate and the Inflation rate is:

2016-01-14T14:55:14Z

Show real terms expressly.

← Older revision		Revision as of 14:55, 14 January 2016
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	A rate which has been restated to exclude the effects of inflation.		A real terms rate - often abbreviated to 'real rate- is one which has been restated to exclude the effects of inflation.

	The relationship between the Real rate, the Nominal rate and the Inflation rate is:		The relationship between the Real rate, the Nominal rate and the Inflation rate is:

2015-03-18T15:06:32Z

Add brackets in final calcul

2015-03-18T12:27:55Z

Standardise appearance of page

← Older revision		Revision as of 12:27, 18 March 2015
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	The relationship between the Real rate, the Nominal rate and the Inflation rate is:		The relationship between the Real rate, the Nominal rate and the Inflation rate is:

	~~Real rate = ( (1 + Nominal rate)/(1 + Inflation rate) ) - 1~~

			Real rate = ( ( 1 + Nominal rate ) / ( 1 + Inflation rate ) ) - 1

	~~For example~~

	~~if the Nominal rate of return = 6% ('''0.06''')~~		<b>Example</b>

	~~and the Inflation~~ rate = 3% (~~'''~~0.~~03'''~~),		Nominal rate of return = 6% (0.06).

	~~then the~~ Real rate of return = 1.06/1.03 - 1		Inflation rate = 3% (0.03).


			The Real rate of return is:

			= 1.06 / 1.03 - 1

	= 0.0291		= 0.0291

	= ~~'''~~2.91%~~'''~~.		= 2.91%.

2014-11-26T14:50:31Z

Make branding consistent

← Older revision		Revision as of 14:50, 26 November 2014
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	The relationship between the Real rate, the Nominal rate and the Inflation rate is:		The relationship between the Real rate, the Nominal rate and the Inflation rate is:

	Real rate = ( (1 + Nominal rate)/(1 + Inflation rate) ) - 1		Real rate = ( (1 + Nominal rate)/(1 + Inflation rate) ) - 1


	For example if the Nominal rate of return = 6% ('''0.06''') and the Inflation rate = 3% ('''0.03'''),		For example

			if the Nominal rate of return = 6% ('''0.06''')

			and the Inflation rate = 3% ('''0.03'''),

			then the Real rate of return = 1.06/1.03 - 1

			= 0.0291

	~~then the Real rate of return = 1.06/1.03 - 1 = 0.0291~~ = '''2.91%'''.		= '''2.91%'''.

2013-08-13T08:52:41Z

Change square brackets to round, and spread out.

← Older revision		Revision as of 08:52, 13 August 2013
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	The relationship between the Real rate, the Nominal rate and the Inflation rate is:		The relationship between the Real rate, the Nominal rate and the Inflation rate is:
	Real rate = ([1 + Nominal rate]/[1 + Inflation rate]) - 1		Real rate = ( (1 + Nominal rate)/(1 + Inflation rate) ) - 1


			For example if the Nominal rate of return = 6% ('''0.06''') and the Inflation rate = 3% ('''0.03'''),

			then the Real rate of return = 1.06/1.03 - 1 = 0.0291 = '''2.91%'''.

	~~For example if the Nominal rate of return = 6% (0.06) and the Inflation rate = 3% (0.03), then the Real rate of return = 1.06/1.03 - 1 = 0.0291 = 2.91%.~~

	== See also ==		== See also ==
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	* [[Nominal rate]]		* [[Nominal rate]]
	* [[Real]]		* [[Real]]