Raunvaxtarhraði
Raunvaxtarhraði is an Icelandic term that translates to "real growth rate" or "real interest rate." It refers to the rate at which the value of an investment or a debt increases after accounting for the effects of inflation. In simpler terms, it shows how much your purchasing power has actually grown.
The calculation of the real interest rate is generally done by subtracting the inflation rate from the
Understanding the real growth rate is crucial for making informed financial decisions. It provides a more accurate