Natalie's Nail Salon has 2 locations: Natalie's Downtown, and Natalie's By-the-Beach. The two salons combined performed 343 pedicures in the first quarter of 2011, and 380 pedicures in the second quarter. Pedicures cost $9.90 at both locations. Natalie notices that in Q1, 45% of pedicures are performed at By-the-Beach but in Q2, 46% of the total were performed there. Natalie's sales goals for Quarter 3 are 5.9% growth in each location compared to Quarter 2. Natalie is considering raising pedicures prices to $11.00 at both locations in Q3 to increase revenue.

Assuming growth remains constant, what would be the annual growth rate?