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Author Sunday, Oct 10, 2021

28+ Nominal Interest Rates Formula Background

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What is the nominal rate of interest on a company that has a 7.77% rate of effective interest annually (rounded to two decimal places)?.

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Inflation and interest rates often tend to go hand and hand.

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Nominal rate = real interest rate + inflation rate.

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Could you please explain the calculation that led you to arrive at the value of 2.94% (the real interest rate)?

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In finance and economics, the nominal interest rate refers to the interest rate without adjusting inflation.

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The rate of interest before adjustment for .

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Nominal rate = real interest rate + inflation rate.

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Could you please explain the calculation that led you to arrive at the value of 2.94% (the real interest rate)?

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