1. The problem statement, all variables and given/known data If an investment increased by 40% over 3 years and rose by the same percentage rate each of those years, what was the rate? 2. Relevant equations new_value = old_value(1+r)^p 3. 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.