A Year Ago,you Invested $2,500 in a Savings Account That

Multiple Choice

A year ago,you invested $2,500 in a savings account that pays an annual interest rate of 2.5%.What is your approximate annual real rate of return if the rate of inflation was 3.4% over the year?

A) 0.9%.
B) -0.9%.
C) 5.9%.
D) 3.4%.
E) none of the above.