Suppose your current capital gains tax is at $15\%($federal$)$ and $7\%($state and local$)$ for a combined total tax rate of $22\%.$ If you anticipate the federal rate to increase to $25\%($with state and local unchanged$)$ what is your break even rate of return assuming holding period of $5$ years?

$2\mathrm{.}2\%$

$3\mathrm{.}8\%$

$7\mathrm{.}8\%$

$10\mathrm{.}2\%$