<P> The real interest rate is the rate of interest an investor , saver or lender receives ( or expects to receive ) after allowing for inflation . It can be described more formally by the Fisher equation , which states that the real interest rate is approximately the nominal interest rate minus the inflation rate . </P>
<P> The real interest rate is the rate of interest an investor , saver or lender receives ( or expects to receive ) after allowing for inflation . It can be described more formally by the Fisher equation , which states that the real interest rate is approximately the nominal interest rate minus the inflation rate . </P>
nominal interest rate minus the rate of inflation equals
nominal interest rate minus the rate of inflation equals
real interest rate
real interest rate