Ask Experts Questions for FREE Help !
Ask
    saleemf's Avatar
    saleemf Posts: 1, Reputation: 1
    New Member
     
    #1

    Sep 10, 2009, 04:21 AM
    Investment appraisal methods and calcualation of nominal rate of return
    Calculate the nominal rate of return by using real rate of return and the expected inflation rate of 2.2% and tell me how to use the investment appraisal methods after doing this?
    Thanks for help.
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
    Senior Member
     
    #2

    Sep 10, 2009, 04:36 AM
    With the one-period real return r, the inflation rate i, and the nominal return n all expressed as decimals, the following equality holds...

    (1 + n) = (1 + r)(1 + i)

    Given any two of the three you can quickly find the third.

    As to the second part of your question, explain that a bit more, and tell me your thoughts on it.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Nominal Rate of Return [ 1 Answers ]

How do you find the nominal rate of return for a preferred stock?

How to calculate the annual rate of return of an investment [ 3 Answers ]

How to calculate the annual rate of return for an investment of less than one year's duration.


View more questions Search