Fri 23 Sep 11 | 06:01 AM ET

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Real vs Nominal Returns, Part II: CNBC Explains

Fri 23 Sep 11 | 06:01 AM ET

The general rule in economics is that the value of money will not be equal today to what it is in the future. Also known as the time value of money, this is a central concept in finance theory, which takes into account factors such as interest rates and inflation. How can you tell the difference between real and nominal returns and what critical factors do you need to understand? Salman Khan of the Khan Academy explains.

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Markets Looking for Excuse to Take Profits: Pro Thu 23 May 13 \| 05:45 AM	UK Start-Up Quill to Get $1 Million Investment Thu 23 May 13 \| 05:20 AM	Still Case for 'Easy Monetary Policy': BoE Member Thu 23 May 13 \| 05:00 AM	Japan in Big 'Monetary Experiment': BoE Member Thu 23 May 13 \| 04:55 AM	Were London Killers Acting Alone? Thu 23 May 13 \| 04:20 AM
Europe Is Still in a Downturn: Economist Thu 23 May 13 \| 04:00 AM	Man Knifed to Death in Suspected London Terror Attack Thu 23 May 13 \| 03:50 AM	We Have a Lot of Pricing Power: TGS CEO Thu 23 May 13 \| 03:30 AM	Market Will Pull Back When Fed Tapers: Pro Thu 23 May 13 \| 03:15 AM	Why the Correction Will Be Short-Lived Thu 23 May 13 \| 03:05 AM
European Market Opens Sharply Lower Thu 23 May 13 \| 03:00 AM	IMF Chief Under Investigation in France Thu 23 May 13 \| 02:46 AM	Does Austerity Kill? Thu 23 May 13 \| 02:40 AM	'Huge Milestone' Has Been Passed: Aveva CEO Thu 23 May 13 \| 02:30 AM	'We Are Penetrating Our Markets': Investec CEO Thu 23 May 13 \| 02:15 AM
Huge Volatility in Today's Nikkei Session Thu 23 May 13 \| 02:03 AM	US Core Market Still Under Pressure: SABMiller CEO Thu 23 May 13 \| 02:00 AM	Nikkei Needed Some 'Digestion': Pro Thu 23 May 13 \| 02:00 AM	Could the Market Withstand Fed's Tapering? Thu 23 May 13 \| 01:30 AM	Bernanke Confused Everybody: Dennis Gartman Thu 23 May 13 \| 01:00 AM
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Real vs Nominal Returns, Part II: CNBC Explains

Real vs Nominal Returns, Part II: CNBC Explains

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