X-Message-Number: 27273 From: "marta sandberg" <> Subject: The REAL Interest Rate Date: Tue, 25 Oct 2005 17:37:28 +0800 John de Rivaz wrote: If the after tax return from a fixed interest is x% and the inflation rate is y% then the real return is x%-y%, call it r%. - - - If you wish to be very finicky, then the real rate of interest (R) is R = (1+i)/(1+r) 1 Where the expected rate of inflation is i' and the given or nominal rate of return is r' Of course, r i' is a simple close approximation. Marta Sorry John, but I am just studying for my Finance exam at uni. _________________________________________________________________ Access your Hotmail straight from your i-mode mobile http://a.ninemsn.com.au/b.aspx?URL=http%3A%2F%2Fadsfac%2Enet%2Flink%2Easp%3Fcc%3DTEL175%2E16267%2E0&_t=751223833&_m=EXT Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=27273