Forums Finance Finance Questions

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  • #16021

    admin
    Keymaster

    If the nominal interest rate is 7% per year and the inflation rate is 2% per year, what is the exact real rate of return?

    #16022

    admin
    Keymaster

    Solution
    The exact real rate of return is 1.07/1.02 – 1 ≈ 4.90%

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