Formula
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rt1
real interest expected over the period of the loan
it
nominal interest at the time of the loan
pit1
inflation expected over the period of the loan
sigma
representative value for the risk engaged in the operation
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Real interest(given nominal interest,inflation and representative value)
Formula description
Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money,or money earned by deposited funds.rnSimple interest is calculated only on the principal amount, or on that portion of the principal amount that remains unpaid.
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it
pit1
sigma
rt1
Precision
Formula code
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