*Please show work and explain steps*

Based on actual annual total returns, an initial investment of $10,000 in the Vanguard Health Care fund at the beginning of 2010 would have grown to $38,237 by the end of 2019. During this same period, inflation averaged about 2 percent per year. Calculate the annual average compound real (i.e., after-inflation) return earned on an initial investment of $10,000 in the Vanguard Health Care fund over the ten-year period from the beginning of 2010 to the end of 2019.

a. 6.5%

b. 12.11%

c. 12.35%

d. 14.35%