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Why is the formula for real return this: Real return=(1+nominal rate)/((1+inflation rate))-1 And not this: real return=nominal return/inflation rate. Because if I do both formulas

Why is the formula for real return this:

Real return=(1+nominal rate)/((1+inflation rate))-1

And not this: real return=nominal return/inflation rate.

Because if I do both formulas I get different results.

For example:

(1.1165/1.034)-1=7.97%

AND if I do the other one I get:

(11.65%/3.4%)=3.43%

Thanks!!

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