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Real Interest Rate
What does it mean?
The amount by which the nominal interest rate is higher than the inflation rate.
In Other Words...
The real rate of interest is approximated by taking the nominal interest rate and subtracting inflation. The real interest rate is the growth rate of purchasing power derived from an investment.
Related Links
All about Inflation Tutorial - What causes inflation? How does it affect your investments and standard of living? This tutorial has the answers.
Related Terms
Inflation | Interest Rate | Nominal Interest Rate | Real Rate of Return | Return
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A | B |
C | D |
E | F |
G | H |
I | J |
K | L |
M | N |
O | P |
Q | R |
S | T |
U | V |
W | X |
Y | Z
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