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Nominal interest, real interest, and inflation calculations | AP Macroeconomics | Khan Academy

Frames Nominal interest, real interest, and inflation calculations | AP Macroeconomics | Khan Academy

Description Nominal interest, real interest, and inflation calculations | AP Macroeconomics | Khan Academy

Comments Nominal interest, real interest, and inflation calculations | AP Macroeconomics | Khan Academy

I think the way to calculate is just the same as the way in chapter 7 (about the real return) Comment from : @宋沁-m6s

Can someone explain why 10294 becomes 294? Thank you! Comment from : @surin6953

Quick and simple Very effective explanation! Comment from : @giulianonigro774

What an explanation! Impressed!! Thank you so much!!!!!!!!!!!!!! Comment from : @Anonymous-we4eu

Hey I have a general question in Economicsbrlets says country’s current inflation is 8 and the target is to set it at 2brThe question is: The average interest rate you get on the bonds you purchased is 2 Are you making a profit in the “nominal” term? Why? Comment from : @AHMD_a1

I took economics, personal finance and general business in high school and somehow never learned about this Comment from : @lethalexponent6

"If you can't explain it simply, you don't understand it well enough" –Einstein Comment from : @unforensicaccountant

Need more people so spread this video more Comment from : @子阳-b6f

If there is no inflation present, the real rate and the nominal rate would be the same? Comment from : @aasthajain8611

Understanding the definitions in the text book is like deciphering a code This is a really great and simple explanation Comment from : @rajeshnaidu376

Thanki sir Comment from : @nandinisingh1733

You've explained in 3 minutes what I didn't understand from my books in 3 hours Thank you Comment from : @comrade3909

Thank you for explaining this concept in layman's terms Thank you Comment from : @daphnedominique3711

How do you find the NIR and RIR if neither are given? brbrQuestion is you deposit 2,000 in a savings account and a year later you have 2,100 Meanwhile the CPI raises from 200-204 In this case the nominal interest rate is i__/i and the real interest rate is _____ brbrYou cant find the nir and rir using these equations because there is none given The only way I could find them was by using inflation Nominal is dollars and the real is CPI brSo the correct answer is 5 and 3 brbrBut the book doesnt go over how to get to this conclusion at all Or if I just somehow got lucky and the inflation happened to be the same answer Comment from : @littlepip4014

I NEVER want to be more mathematically precise Comment from : @bi0lizard1

Sal Khan THE GOAT Comment from : @saianjanakella5879

1:53 Thank you for this I have been going nuts over the past 15 minutes to figure out why some sources are calculating the real rate of return differently than others Comment from : @SanketDube

Good day Your video is very well explained and easy to understandbrI just have one question If there is another predicted inflation in the future brI should just add the current inflation and the predicted inflation? Comment from : @catherinejoyavelino7493

Hi there,brbrThanks for the great video Could you tell me what you use for the video I mean the software?brbrThanks Comment from : @rajan9651

thanks for keeping this simple and quick My textbook over explains it and complicates this Comment from : @eastonhubbard7963

Can you explain more detail on why it's 105 / 102, please ? what did you take the 10294 calculated from to arrive at the 294? Comment from : @Leandrasjones

Hey @KhanAcademy, now do this for deflationary scenario with inflation of -3 Please explain why the resulting higher real interest rate is bad from the perspective of the FED who wants zero rates so that people and busnisses can borrow Comment from : @AA-dq5uo

great video! Comment from : @mag5993

Thank you and subscribed Comment from : @Munz_901

Can you explain more detail on why it's 105 / 102, please?brbrThank you ever so much Comment from : @Madeline-ki6bv

The textbook I am working from was written by the professor and is incredibly dense, thank you for explaining this in a simplistic way Comment from : @thomasward7196

what if my real interest rate comes out with a negative number? do i run with that? Comment from : @itsnrv1817

the nominal rate of return is 800 the real rate of return is 300 calculate the rate of inflation?branswer plz Comment from : @bramhakrthk7526

Amazing and very concise video It contains exactly what I was looking for and in just 3 minutes I got it, thanks! Comment from : @felipegomes9646

Help😭😭😭brbrbrbr You have P280 000 available for a deposit on a house that will cost you P960 000 (including transfer costs, etc) You can obtain a mortgage loan from the bank at 20 per annum compounded monthly and a term of 25 years Your company is willing to grant you a housing subsidy of P2 000 per month What would the monthly payments be in total, and what would they be after deduction of the subsidy? What is the total interest that will be paid over the term of the loan? How does this compare with the total real cost of the loan, assuming an inflation rate of 075 per month? And how does the total real cost of your share of the payments compare with the principal borrowed? Comment from : @patiencesethibe8923

Sir, my doubt is that,, how nominal intrest rate exceed real intrest rate if inflation in positive& vice versabrPlz replybrThank you Comment from : @Sarjerao88

You have sweet voice and simply best videos Comment from : @rujanraut4088

I finally understand this concept thank you Comment from : @thatomashopha

Simply beautiful Comment from : @jansasha2628

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