• NP is the nominal price ($) • PI is the price index To calculate the real price, divide the nominal price by the price index. ## How to Calculate Real Price? The following example problems outline how to calculate Real Price. Example Problem #1: 1. First, determine the nominal price ($).
1. The nominal price ($) is given as: 100. 2. Next, determine the price index. 1. The price index is provided as: 30. 3. Finally, calculate the Real Price using the equation above: RP = NP / PI * 100 The values given above are inserted into the equation below: RP = 100 / 30 * 100 = 333.33 ($)

Example Problem #2:

For this problem, the variables needed are provided below:

nominal price (\$) = 400

price index = 20

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer.

RP = NP / PI * 100 = ?