Time & moneyAges 16-18

Nominal vs real interest & inflation

Use the Fisher approximation (real ≈ nominal − inflation) to find the inflation-adjusted return. Review suitability for your learners before teaching.

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Worksheet StudioPractice pack · Ages 16-18

Nominal vs real interest & inflation

Take your time. Show your thinking.

1. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 7.5% and inflation is 5.5%.
7.5% · 5.5% · Nominal vs real interest &…
2. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.3% and inflation is 6.1%.
8.3% · 6.1% · Nominal vs real interest &…
3. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.4% and inflation is 5.8%.
6.4% · 5.8% · Nominal vs real interest &…
4. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.6% and inflation is 4.8%.
9.6% · 4.8% · Nominal vs real interest &…
5. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.7% and inflation is 6.8%.
9.7% · 6.8% · Nominal vs real interest &…
6. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.7% and inflation is 4.1%.
4.7% · 4.1% · Nominal vs real interest &…
7. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.8% and inflation is 6.8%.
12.8% · 6.8% · Nominal vs real interest &…
8. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.0% and inflation is 2.9%.
4.0% · 2.9% · Nominal vs real interest &…
9. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.3% and inflation is 6.7%.
8.3% · 6.7% · Nominal vs real interest &…
10. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.7% and inflation is 7.4%.
9.7% · 7.4% · Nominal vs real interest &…
11. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.4% and inflation is 3.9%.
4.4% · 3.9% · Nominal vs real interest &…
12. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.8% and inflation is 4.3%.
6.8% · 4.3% · Nominal vs real interest &…

12 questions · Seed 104729 · Age guidance, not curriculum certification

View the answer key

Worksheet StudioAnswer key · Ages 16-18

Nominal vs real interest & inflation

Answers and reasoning. Review before teaching.

1. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 7.5% and inflation is 5.5%.
2.0%
Real interest rate r ≈ 7.5% − 5.5% = 2.0%.
2. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.3% and inflation is 6.1%.
2.2%
Real interest rate r ≈ 8.3% − 6.1% = 2.2%.
3. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.4% and inflation is 5.8%.
0.6%
Real interest rate r ≈ 6.4% − 5.8% = 0.6%.
4. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.6% and inflation is 4.8%.
4.8%
Real interest rate r ≈ 9.6% − 4.8% = 4.8%.
5. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.7% and inflation is 6.8%.
2.9%
Real interest rate r ≈ 9.7% − 6.8% = 2.9%.
6. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.7% and inflation is 4.1%.
0.6%
Real interest rate r ≈ 4.7% − 4.1% = 0.6%.
7. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.8% and inflation is 6.8%.
6.0%
Real interest rate r ≈ 12.8% − 6.8% = 6.0%.
8. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.0% and inflation is 2.9%.
1.1%
Real interest rate r ≈ 4.0% − 2.9% = 1.1%.
9. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.3% and inflation is 6.7%.
1.6%
Real interest rate r ≈ 8.3% − 6.7% = 1.6%.
10. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.7% and inflation is 7.4%.
2.3%
Real interest rate r ≈ 9.7% − 7.4% = 2.3%.
11. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.4% and inflation is 3.9%.
0.5%
Real interest rate r ≈ 4.4% − 3.9% = 0.5%.
12. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.8% and inflation is 4.3%.
2.5%
Real interest rate r ≈ 6.8% − 4.3% = 2.5%.

12 questions · Seed 104729 · Age guidance, not curriculum certification

Worksheet StudioPractice pack · Ages 16-18

Nominal vs real interest & inflation

Take your time. Show your thinking.

1. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 7.5% and inflation is 5.5%.
7.5% · 5.5% · Nominal vs real interest &…
2. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.3% and inflation is 6.1%.
8.3% · 6.1% · Nominal vs real interest &…
3. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.4% and inflation is 5.8%.
6.4% · 5.8% · Nominal vs real interest &…
4. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.6% and inflation is 4.8%.
9.6% · 4.8% · Nominal vs real interest &…
5. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.7% and inflation is 6.8%.
9.7% · 6.8% · Nominal vs real interest &…
6. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.7% and inflation is 4.1%.
4.7% · 4.1% · Nominal vs real interest &…
7. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.8% and inflation is 6.8%.
12.8% · 6.8% · Nominal vs real interest &…
8. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.0% and inflation is 2.9%.
4.0% · 2.9% · Nominal vs real interest &…
9. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.3% and inflation is 6.7%.
8.3% · 6.7% · Nominal vs real interest &…
10. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.7% and inflation is 7.4%.
9.7% · 7.4% · Nominal vs real interest &…
11. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.4% and inflation is 3.9%.
4.4% · 3.9% · Nominal vs real interest &…
12. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.8% and inflation is 4.3%.
6.8% · 4.3% · Nominal vs real interest &…

12 questions · Seed 104729 · Age guidance, not curriculum certification

Worksheet StudioAnswer key · Ages 16-18

Nominal vs real interest & inflation

Answers and reasoning. Review before teaching.

1. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 7.5% and inflation is 5.5%.
2.0%
Real interest rate r ≈ 7.5% − 5.5% = 2.0%.
2. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.3% and inflation is 6.1%.
2.2%
Real interest rate r ≈ 8.3% − 6.1% = 2.2%.
3. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.4% and inflation is 5.8%.
0.6%
Real interest rate r ≈ 6.4% − 5.8% = 0.6%.
4. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.6% and inflation is 4.8%.
4.8%
Real interest rate r ≈ 9.6% − 4.8% = 4.8%.
5. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.7% and inflation is 6.8%.
2.9%
Real interest rate r ≈ 9.7% − 6.8% = 2.9%.
6. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.7% and inflation is 4.1%.
0.6%
Real interest rate r ≈ 4.7% − 4.1% = 0.6%.
7. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.8% and inflation is 6.8%.
6.0%
Real interest rate r ≈ 12.8% − 6.8% = 6.0%.
8. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.0% and inflation is 2.9%.
1.1%
Real interest rate r ≈ 4.0% − 2.9% = 1.1%.
9. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.3% and inflation is 6.7%.
1.6%
Real interest rate r ≈ 8.3% − 6.7% = 1.6%.
10. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.7% and inflation is 7.4%.
2.3%
Real interest rate r ≈ 9.7% − 7.4% = 2.3%.
11. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 4.4% and inflation is 3.9%.
0.5%
Real interest rate r ≈ 4.4% − 3.9% = 0.5%.
12. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.8% and inflation is 4.3%.
2.5%
Real interest rate r ≈ 6.8% − 4.3% = 2.5%.

12 questions · Seed 104729 · Age guidance, not curriculum certification