Answer:
1.98%
Step-by-step explanation:
Inflation rate = (CPI at the end of the year / CPI at the beginning of the year) - 1
(257 / 252) - 1 = 0.01984 = 1.984%
(1 + nominal interest rate) = (1 + inflation rate) (1 + real interest rate)
1.04 = 1.01984 x (1 + real interest rate)
(1 + real interest rate) = (1.04 / 1.01984) - 1 = 1.98%