Elan gives the following explanation but it doesn’t make it very clear how they break it down this way:

Vo=[Do x (1+g)]/r-g

38.25=[1.5 x (1+g)]/0.1-g

3.825-38.25g=1.5+1.5g

g=5.85%

Haven’t had a problem solving for r previously, but with g in the numerator as well as the denominator I am struggling a bit with this one. Any help explaining this would be appreciated

Don’t worry about learning how to find r or g. On the exam just do trial and error. Start with the first choice, if it’s wrong then go to the second and then third if necessary.

Sure you can, but why not directly solve for the answer rather plugging and chugging maybe 3 times. If you use trial and error on too many questions that could be wasted time.