Lisa, age 35, is thinking about investing for retirement. She plans to retire when she turns age 65. At that time, she will need $3.05 million in assets. She has calculated that inflation will average 2.40% over her lifetime. If she can earn an average annual 7.15% rate of return, what will be her real rate of return?

4.75%.

4.64%.

2.10%.

5.15%.