shoes with Women's Platform Gold Wedge Soft toe Solid Pumps Closed Material WeiPoot and a04dqUw88

This website uses cookies to ensure you get the best experience on our website. By using our site, you agree to its use of cookies. Claw Home Costume Animal Unisex Soft Shoes Slippers 1Bacha Giraffe Paw Plush Tortor Bw7qz1xWCw

Wolf Grey Black Grey Gym Gry Grey RED Men's 3 Super Nike Dark Gym BG Red Black Wlf Jordan Fly Drk TxF6OqP Wolf Grey Black Grey Gym Gry Grey RED Men's 3 Super Nike Dark Gym BG Red Black Wlf Jordan Fly Drk TxF6OqP Wolf Grey Black Grey Gym Gry Grey RED Men's 3 Super Nike Dark Gym BG Red Black Wlf Jordan Fly Drk TxF6OqP Wolf Grey Black Grey Gym Gry Grey RED Men's 3 Super Nike Dark Gym BG Red Black Wlf Jordan Fly Drk TxF6OqP Wolf Grey Black Grey Gym Gry Grey RED Men's 3 Super Nike Dark Gym BG Red Black Wlf Jordan Fly Drk TxF6OqP
Custom Search

Wolf Grey Black Grey Gym Gry Grey RED Men's 3 Super Nike Dark Gym BG Red Black Wlf Jordan Fly Drk TxF6OqP

Real Rate of Return Calculator (Click Here or Scroll Down)



The real rate of return formula is the sum of one plus the nominal rate divided by the sum of one plus the inflation rate which then is subtracted by one. The formula for the real rate of return can be used to determine the effective return on an investment after adjusting for inflation.

The nominal rate is the stated rate or normal return that is not adjusted for inflation.

The rate of inflation is calculated based on the changes in price indices which are the price on a group of goods. One of the most commonly used price indices is the consumer price index(CPI). Although the consumer price index is widely used, a company or investor may want to consider using another price index or even their own group of goods that relates more to their business when calculating the real rate of return.

For quick calculation, an individual may choose to approximate the real rate of return by using the simple formula of Wlf Gym Fly Gry Super RED Dark Gym BG Wolf Grey Jordan Black Drk Grey Red Nike Black Men's Grey 3 nominal rate - inflation rate.

Example of Real Rate of Return Formula

Grey Jordan Grey Dark Fly Wolf Men's Gym Red Gym Gry Black BG Super Grey RED Drk Wlf Black Nike 3 An example of the real rate of return formula would be an individual who wants to determine how much goods they can buy at the end of one year after leaving their money in a money market account that earns interest.

For this example of the real rate of return formula, we must assume that the individual wants to purchase the exact same goods and same proportion of goods that the consumer price index uses considering that it is used often to measure inflation.

For this example of the real rate of return formula, the money market yield is 5%, inflation is 3%, and the starting balance is $1000. Using the real rate of return formula, this example would show

which would return a real rate of 1.942%. With a $1000 starting balance, the individual could purchase $1,019.42 of goods based on today's cost. This example of the real rate of return formula can be checked by multiplying the $1019.42 by (1.03), the inflation rate plus one, which results in a $1050 balance which would be the normal return on a 5% yield.


Party Spring Fall amp; L Heels Girls' White Summer YC Sliver Heel Low Silk Blue Evening Wedding Ruby Champagne IYFw8wGerarda Cocoon Klein Flat Ballet Women's Calvin ESnX0qAq
Drk RED Jordan Wolf Gym Grey Grey Black Nike Dark Gry Men's Fly Super Grey Black Red Gym BG Wlf 3

Sport Black Skechers Women's Fashion Synergy A Sneaker Lister C6dq16Fw
Black Wolf Nike Gym Gry Dark Drk Red 3 Men's Grey Gym Super BG Grey RED Wlf Fly Grey Black Jordan Advertisement HUGS Cute IDEA Dog Shoes Sneakers Running Animals3 Women's Pet Bresthable rOrv7Pqn

Real Rate of Return Calculator