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.

New variation Try interactive challenge Browse templates

Choose “Save as PDF” to keep a copy. Use your browser’s paper setting for A4 or Letter.

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 8.8% and inflation is 3.9%.
8.8% · 3.9% · Nominal vs real interest &…
2. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.6% and inflation is 6.6%.
8.6% · 6.6% · Nominal vs real interest &…
3. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.6% and inflation is 5.3%.
9.6% · 5.3% · Nominal vs real interest &…
4. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 7.3% and inflation is 2.5%.
7.3% · 2.5% · Nominal vs real interest &…
5. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.6% and inflation is 7.7%.
12.6% · 7.7% · Nominal vs real interest &…
6. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.9% and inflation is 7.5%.
12.9% · 7.5% · Nominal vs real interest &…
7. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.9% and inflation is 4.8%.
6.9% · 4.8% · Nominal vs real interest &…
8. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.3% and inflation is 3.5%.
6.3% · 3.5% · Nominal vs real interest &…
9. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 10.7% and inflation is 6.7%.
10.7% · 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 7.2% and inflation is 3.8%.
7.2% · 3.8% · Nominal vs real interest &…
11. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 5.7% and inflation is 3.4%.
5.7% · 3.4% · Nominal vs real interest &…
12. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.1% and inflation is 5.3%.
9.1% · 5.3% · Nominal vs real interest &…

12 questions · Seed 43 · 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 8.8% and inflation is 3.9%.
4.9%
Real interest rate r ≈ 8.8% − 3.9% = 4.9%.
2. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.6% and inflation is 6.6%.
2.0%
Real interest rate r ≈ 8.6% − 6.6% = 2.0%.
3. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.6% and inflation is 5.3%.
4.3%
Real interest rate r ≈ 9.6% − 5.3% = 4.3%.
4. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 7.3% and inflation is 2.5%.
4.8%
Real interest rate r ≈ 7.3% − 2.5% = 4.8%.
5. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.6% and inflation is 7.7%.
4.9%
Real interest rate r ≈ 12.6% − 7.7% = 4.9%.
6. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.9% and inflation is 7.5%.
5.4%
Real interest rate r ≈ 12.9% − 7.5% = 5.4%.
7. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.9% and inflation is 4.8%.
2.1%
Real interest rate r ≈ 6.9% − 4.8% = 2.1%.
8. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.3% and inflation is 3.5%.
2.8%
Real interest rate r ≈ 6.3% − 3.5% = 2.8%.
9. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 10.7% and inflation is 6.7%.
4.0%
Real interest rate r ≈ 10.7% − 6.7% = 4.0%.
10. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 7.2% and inflation is 3.8%.
3.4%
Real interest rate r ≈ 7.2% − 3.8% = 3.4%.
11. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 5.7% and inflation is 3.4%.
2.3%
Real interest rate r ≈ 5.7% − 3.4% = 2.3%.
12. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.1% and inflation is 5.3%.
3.8%
Real interest rate r ≈ 9.1% − 5.3% = 3.8%.

12 questions · Seed 43 · 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 8.8% and inflation is 3.9%.
8.8% · 3.9% · Nominal vs real interest &…
2. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.6% and inflation is 6.6%.
8.6% · 6.6% · Nominal vs real interest &…
3. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.6% and inflation is 5.3%.
9.6% · 5.3% · Nominal vs real interest &…
4. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 7.3% and inflation is 2.5%.
7.3% · 2.5% · Nominal vs real interest &…
5. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.6% and inflation is 7.7%.
12.6% · 7.7% · Nominal vs real interest &…
6. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.9% and inflation is 7.5%.
12.9% · 7.5% · Nominal vs real interest &…
7. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.9% and inflation is 4.8%.
6.9% · 4.8% · Nominal vs real interest &…
8. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.3% and inflation is 3.5%.
6.3% · 3.5% · Nominal vs real interest &…
9. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 10.7% and inflation is 6.7%.
10.7% · 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 7.2% and inflation is 3.8%.
7.2% · 3.8% · Nominal vs real interest &…
11. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 5.7% and inflation is 3.4%.
5.7% · 3.4% · Nominal vs real interest &…
12. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.1% and inflation is 5.3%.
9.1% · 5.3% · Nominal vs real interest &…

12 questions · Seed 43 · 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 8.8% and inflation is 3.9%.
4.9%
Real interest rate r ≈ 8.8% − 3.9% = 4.9%.
2. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 8.6% and inflation is 6.6%.
2.0%
Real interest rate r ≈ 8.6% − 6.6% = 2.0%.
3. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.6% and inflation is 5.3%.
4.3%
Real interest rate r ≈ 9.6% − 5.3% = 4.3%.
4. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 7.3% and inflation is 2.5%.
4.8%
Real interest rate r ≈ 7.3% − 2.5% = 4.8%.
5. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.6% and inflation is 7.7%.
4.9%
Real interest rate r ≈ 12.6% − 7.7% = 4.9%.
6. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 12.9% and inflation is 7.5%.
5.4%
Real interest rate r ≈ 12.9% − 7.5% = 5.4%.
7. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.9% and inflation is 4.8%.
2.1%
Real interest rate r ≈ 6.9% − 4.8% = 2.1%.
8. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 6.3% and inflation is 3.5%.
2.8%
Real interest rate r ≈ 6.3% − 3.5% = 2.8%.
9. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 10.7% and inflation is 6.7%.
4.0%
Real interest rate r ≈ 10.7% − 6.7% = 4.0%.
10. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 7.2% and inflation is 3.8%.
3.4%
Real interest rate r ≈ 7.2% − 3.8% = 3.4%.
11. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 5.7% and inflation is 3.4%.
2.3%
Real interest rate r ≈ 5.7% − 3.4% = 2.3%.
12. Using the Fisher approximation (r ≈ i − π), find the real interest rate if the nominal interest rate is 9.1% and inflation is 5.3%.
3.8%
Real interest rate r ≈ 9.1% − 5.3% = 3.8%.

12 questions · Seed 43 · Age guidance, not curriculum certification