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2. Do Nominal Interest Rates Calculate for Inflation? - AOL

   www.aol.com/nominal-interest-rates-calculate...

   The nominal interest earned on a deposit or paid on a loan is the balance times the nominal interest rate. For instance, a bank may advertise one-year $10,000 personal loans available at a 4% ...

3. Nominal interest rate - Wikipedia

   en.wikipedia.org/wiki/Nominal_interest_rate

   The nominal interest rate, also known as an annual percentage rate or APR, is the periodic interest rate multiplied by the number of periods per year. For example, a nominal annual interest rate of 12% based on monthly compounding means a 1% interest rate per month (compounded). [2]

4. Fisher equation - Wikipedia

   en.wikipedia.org/wiki/Fisher_equation

   The Fisher equation can be used in the analysis of bonds.The real return on a bond is roughly equivalent to the nominal interest rate minus the expected inflation rate. But if actual inflation exceeds expected inflation during the life of the bond, the bondholder's real return will suffer.

5. Nominal vs. Real Interest Rate: Do Either Calculate for ... - AOL

   www.aol.com/nominal-vs-real-interest-rate...

   For example, if the inflation rate is 5%, on a one-year loan of $1,000 with an 8% nominal interest rate the real interest rate would be 8% minus 5% or 3%. The real interest rate will usually be ...

6. Fisher effect - Wikipedia

   en.wikipedia.org/wiki/Fisher_effect

   The equation is an approximation; however, the difference with the correct value is small as long as the interest rate and the inflation rate is low. The discrepancy becomes large if either the nominal interest rate or the inflation rate is high. The accurate equation can be expressed using periodic compounding as:

7. Real interest rate - Wikipedia

   en.wikipedia.org/wiki/Real_interest_rate

   The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation. It can be described more formally by the Fisher equation, which states that the real interest rate is approximately the nominal interest rate minus the inflation rate.