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## Homework Statement

If an investment increased by 40% over 3 years and rose by the same percentage rate each of those years, what was the rate?

## Homework Equations

new_value = old_value(1+r)^p

## The Attempt at a Solution

Let value of the investment be 1000, then we have 1000(1+0.4) = 1000(1+r)^3, r = 0.1187

r seems reasonable to me, but I am not sure that is right.