You loaned $100 to a friend for one year at a nominal rate of interest of 5 percent. Inflation during that year was 8 percent. How much did the purchasing power of your money change (an increase is positive and a decrease is negative)?

a)increase by approximately 13 percent.

b)decrease by approximately 3 percent.

c)increase by approximately 3 percent.

d)decrease by approximately 13 percent.