Answer:
3.82%
Explanation:
Calculation to determine the real rate of return on this investment
Using this formula
1 + r = (1 + R)/(1 + i) - 1
Let plug in the formula
1 + r =(1+.06)/(1+.02)-1
1 + r = 1.06/1.02 - 1
1 + r =1.0392-1
1 + r = .0392*100
1 + r =3.92%
Therefore the real rate of return on this investment is 3.92%
