Here's the formula: Real interest rate = nominal interest rate - rate of inflation (actual or expected) Here is an example from an investor's point of view. Say the initial interest rate on a bond ...

The effective annual interest rate is the actual return on a savings account or other interest-bearing investment when the effects of compounding are considered. It also reflects the real ...

which is why the real interest rate provides a better picture of either. For example, putting $1,000 into a savings account that earns 2 percent annual interest at the start of the year would ...

Capital lease interest can be computed using the IRR function in a spreadsheet. Adjust IRR formula for payment frequency to get correct annual interest rates ... with an example in the next ...

To find an investment's interest rate, substitute price, face value, and duration into a formula. For T-bills, subtract purchase price from face value, divide by face value, adjust for term.