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Example Of Real Rate Of Return In TVM Calculations // SHARP EL-738XT Financial Calculator
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We calculate the real rate of return of an investment.
The real rate of return incorporates the affects of inflation, while nominal interest rate does not.
Real Rate Of Return Formula:
[((1 + nominal rate) / (1+ inflation rate)) -1] x100 = Real Rate of Return
The real rate of return incorporates the affects of inflation, while nominal interest rate does not.
Real Rate Of Return Formula:
[((1 + nominal rate) / (1+ inflation rate)) -1] x100 = Real Rate of Return