The nominal interest rate of an investment is 15%. Inflation is 10.1%. What is the real rate of interest of this investment?

Real rate of interest takes inflation into consideration. And nominal interest rate is that rate which is calculated before taking inflation into consideration. So in order to calculate the real rate of interest, actual or expected rate of inflation will be subtracted from the nominal rate of interest. So we can calculate real rate of interest as follows :

Real rate of interest = Nominal rate of interest - Inflation rate

Real rate of interest = 15% - 10.1% = 4.9%

So answer is 4.9%.

The real rate of interest of this investment is 4.9%.