1. What is the relationship between nominal interest rate and real interest rate? How to convert?

The relationship between the two: real interest rate = (1 nominal interest rate) ÷ (1 inflation rate) - 1.

Under inflationary conditions, various interest rates in the market are nominal interest rates. The real interest rate is often not directly observable.

Generally speaking, the nominal interest rate is greater than the inflation rate, and the difference between the two is the real interest rate.

The so-called nominal interest rate is the interest rate published by the central bank or other institutions that provide funds and loans without adjusting for inflation factors, that is, the ratio of the monetary amount of interest (remuneration) to the monetary amount of principal. This refers to the interest rate that includes compensation for the risk of inflation (including deflation). Although the nominal interest rate is the interest rate charged or paid by fund providers or users for cash, people should take inflation into account. For example, if Zhang deposits a one-year deposit of 100 yuan in a bank, he will receive 5 yuan in interest when it matures in one year. The interest rate is 5%. This interest rate is the nominal interest rate.

It is the symmetry of "nominal tax rate". The ratio of the actual tax amount to the taxable amount. When the actual tax amount is equal to the tax payable and the total amount of taxable objects is equal to the amount of taxable tax objects, the actual tax rate is equal to the nominal tax rate. If they are not equal, the effective tax rate is not equal to the nominal tax rate. For example, when taxing personal income, assuming that the taxable income is 1,000 yuan and the tax rate is 10%, the tax payable is 100 yuan. If the total income is 10,000 yuan and the tax rate is 20%, the tax payable is 2,000 yuan. The actual tax amount is 1,500 yuan, which is less than the tax payable, then the actual tax rate is 1,500 yuan ÷ 10,000 yuan = 15%, which is less than the nominal tax rate of 20%.

2. Nominal interest rate and real interest rate

The nominal interest rate is the unadjusted interest rate, that is, the nominal interest rate includes the inflation rate. The real interest rate refers to the real interest rate at which savers or investors receive interest returns after excluding the inflation rate.

1. Conversion formula between nominal interest rate and actual interest rate

1. Actual interest rate when interest is calculated multiple times per year: Periodic interest rate = nominal interest rate / number of interest calculations during the year = r/ m; actual interest rate = [1(r/m)]m-1.

Interest is calculated multiple times a year, and the ratio of the annual interest calculated based on compound interest to the principal is the actual interest rate.

2. Nominal interest rate and real interest rate under inflation

Real interest rate = (1 person - 1

2. Examples

The bank has two loans, both in the amount of 1,000 yuan. The interest rate, term and other factors are the same, but the frequency of interest payments is different. Loan A pays interest twice a year. Obviously, loan B is more profitable for the bank. Some, it is more cost-effective for the borrower to borrow money.

The interest rates mentioned here are temporary interest rates and nominal interest rates that take into account inflation in the financial market. What is said here about nominal interest rates and real interest rates will be explained here using the concepts in financial markets to understand that the period interest rate is a complex average in a certain sense.

3. Nominal interest rates and. Real interest rate?

The nominal interest rate is the legal interest rate

The real interest rate is the interest rate after taking inflation into account. It is often said that the interest rate is negative because the nominal interest rate is lower than the inflation.

4. Which one is bigger, the nominal interest rate or the actual interest rate?

When the interest calculation period is one year, the nominal interest rate and the actual interest rate are equal. When the interest calculation period is shorter than one year, the actual interest rate is greater than Nominal interest rate.

Nominal interest rate: It is the interest rate published by the central bank or other institutions that provide funds and loans without adjusting for inflation factors, that is, the ratio of the monetary amount of interest (remuneration) to the monetary amount of principal. It refers to the interest rate that includes compensation for the risk of inflation (including deflation).

Real interest rate: refers to the interest rate under the condition that the price level remains unchanged and the purchasing power of money remains unchanged. It refers to the interest rate after excluding the inflation rate. Or the real interest rate at which investors receive interest returns.

The larger the nominal interest rate, the shorter the period, and the greater the difference between the real interest rate and the nominal interest rate.