Question 1

What is real return and how does it differ from nominal?

Accepted Answer

Nominal return is what is written in the contract: for example, 20% per year on a deposit. Real return is the growth in purchasing power of your money. If the deposit gives 20% and inflation is 12%, your money actually grows by about 7%, not 20%.

Question 2

How is the real rate calculated?

Accepted Answer

By the Fisher equation: real rate = (1 + nominal) / (1 + inflation) − 1. For small numbers this is close to the simple difference, but at high inflation the gap becomes noticeable. For example: 20% nominal at 12% inflation gives 7.14%, not exactly 8%.

Question 3

What inflation to use for Uzbekistan calculations?

Accepted Answer

Official inflation in Uzbekistan was 8–14% in different years. However, real consumer basket inflation is often felt higher. For conservative calculation use 12–15%. For UZS deposit calculations, 10–12% is a reasonable target.

Question 4

Is a UZS deposit at 20% a good investment?

Accepted Answer

At 10% inflation, the real return is about 9%. That is decent. At 14% inflation — only 5.2%. The key question: does your nominal rate beat inflation? The calculator shows this clearly — look at 'Real gain' in the results.

Question 5

Why account for monthly contributions?

Accepted Answer

Regular investments are a powerful tool thanks to compound interest. Contributing 1M sum per month at 20% annual for 5 years adds +73M on top of the initial amount. Estimates without contributions understate the real result.

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