Maria, age 31, is thinking about investing for retirement. She plans to retire when she turns age 63. At that time, she will need $2.75 million in assets. She has calculated that inflation will average 3.50% over her lifetime. If she can earn an average annual 8.70% rate of return, what will be her real rate of return?

3.95%.

5.02%.

6.70%.

5.20%.