Real Interest Rate - Assignment Point
Real Interest Rate
Subject: Finance | Topics:

Real Interest rate is an interest rate that has been adjusted to eliminate the effects associated with inflation to reflect the important cost of funds towards borrower and the important yield to the lender. The real interest rate of an purchase is calculated for the reason that amount by how the nominal interest rate is higher than the inflation rate. Calculation for Real Interest Rate = Nominal Interest Rate – Inflation (Expected or Actual).

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