If the bank pays you a nominal interest rate of 2.5% on your savings and the rate of inflation is 4%, what is?

Question

If the bank pays you a nominal interest rate of 2.5% on your savings and the rate of inflation is 4%, what is the real rate of return on your savings?

Answer 1

Assume you have $100, which will buy 100 pound of beans. You put the money in the bank for a year, and now have $102.50
Beans now cost $104.
Your $102.50 will buy .985577 pounds of beans.
Your real rate of return = -1.44 %.
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Answer 2

if you invest $100 at the end of the year you get $102.5 which
have worth 102.5*(1-0.04)=$98.4,
So the real rate of return is -1.6%