The real interest rate formula can be used to adjust a nominal interest rate (i) for the effects of the inflation rate (g) to provide a real interest (r).

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The real interest rate formula can be used to adjust a nominal interest rate (i) for the effects of the inflation rate (g) to provide a real interest (r).

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The flat interest rate is the rate of interest calculated as though interest is charged on the opening principal amount throughout the term of a loan.