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the real interest rate

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Q: What is the real return on holding money?
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The real return on holding money?

inflation rate


Can TVM be used to evaluate the real return or just the nominal return?

TVM, or Time Value of Money can certainly be used to calculate a real return. The only difference between a nominal return and a real return is inflation, so simply discount your future cash flows by anticipated inflation and you have a real return. In simpler terms assuming inflation is steady you could simply deduct inflation from your nominal return. For example a nominal 7% return with 3% inflation could be desribed as a 4% real return.


How do you calculate the holding-period return?

The holding-period return (HPR) formula is the return an investor would get for holding a security for a specific period.HPR = (Pt + D / Pt-1) - 1Where,Pt is the stock price at the end of the period of time.D is the dividend payment.


Opportunity cost of holding money?

The opportunity cost of holding money is the nominal interest rate.


Can a car repair person charge for storage if he refuses to return the car?

If you signed an agreement or contract saying so then yes. If he is just holding your car for money's sake then that is unlawful.


When was Return of the Big Money Sound created?

Return of the Big Money Sound was created in 2008.


Will rob van dam return at money in the bank?

Yes he will return at money in the bank 2013


What are the principal objections to the average rate of return method in evalueting capital investment proposals?

The rate of return on capital investment is the amount of money earned on an original investment. The objection to the standard rate of return is the restriction in accessing increase or leaving the project. There is also a fear that documented gain and financial increase is not always represent real money.


Do they use real money in movies?

No they rarely ever use real money in movies.


How can you have a negative real rate of return over the same period?

If the rate of inflation exceeds the nominal rate of return during the period in question, then the real rate of return can be negative.


Webkinz estore do you pay Webkinz money or real money?

You pay real money.


How can one make money from real estate?

Real estate is a fantastic investment and can make someone good money if they are smart about how they invest. Options for making money are flipping houses, where one renovates and then resells a house, renting out a house to pay the mortgage payments and bills, or simply holding on to a house until the housing market improves and reselling at a higher price.