Problem $20-3($Algo$)$

Requlred:

A hedge fund charges an incentive fee of $25\%$ of any investment returns above the T$-$bill rate, which currently is $3\mathrm{.}5\%$ but is subject to

a high water mark. In the first year, the fund suffers a loss of $8\mathrm{.}4\%.$ What rate of return must it earn In the second year to be eligible for

an Incentive fee? $($Do not round Intermedlate calculations. Round your percentage answer to $2$ decimal places.$)$