A hedge fund charges a 20% annual performance fee and an annual expense ratio of 2%. If an investor invests in the fund for 5 years and the fund generates a constant annual rate of return of 5%, what is the average annual fee, as a percent, paid by the investor?

Possible Answers are below

Below 2.5%

Between 2.5% and 2.6%

Between 2.6% and 2.7%

Between 2.7% and 2.8%

Between 2.8% and 2.9%

Between 2.9% and 3.0%

Between 3.0% and 3.1%

Above 3.1%