Nominal Rate: Nominal interest rate refers the interest rate to which a borrower is ready to pay and the lender is ready to receive. The nominal rate is the rate which is agreed and paid. The real rate of return : The inflation-adjusted rate is known as the real interest rate. Real interest rate helps in the retirement planning. To Identify: The nominal rate for the real rate of return and inflation rate.

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Chapter 5, Problem 30P

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Nominal Rate: Nominal interest rate refers the interest rate to which a borrower is ready to pay and the lender is ready to receive. The nominal rate is the rate which is agreed and paid.

The real rate of return: The inflation-adjusted rate is known as the real interest rate. Real interest rate helps in the retirement planning.

To Identify: The nominal rate for the real rate of return and inflation rate.

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