Calculating real interest or inflation adjusted rate using BA II Plus

CFA General Calculators
#1

Given data
Nominal rate = 8%
Inflation rate = 11%
Compute real rate

Real rate = ((1+Nominal rate)/(1+inflation rate))-1 = -0.027027027

Is there a way to calculate real rate using short cut in Texas instruments BA 2 plus calculator ?

#2

Another formula you can use is (nominal - inflation)/(1+inflation). There’s really nothing preprogrammed in the BAII for this.

1 Like
#3

Thank you