On the first of the year, James invested x dollars at Proudstar bank in an account that yields 2.2% in interest every quarter year. At the end of the year, during which he made no additional deposits or withdrawals, he had y dollars in the account. If James had invested the same amount in an account which pays interest on a yearly basis, what must the interest rate be for James to have y dollars at the end of the year?  Choose the most appropriate option:
A) 2.04 %  B) 6.12 %  C) 8 %  D) 8.25 %  E) 9 %

Rationale: "if the interest were compounded annually instead of quarterly then in one year the interest would be 2.2 * 4 = 8.8 % . now , since the interest is compounded quarterly then there would be interest earned on interest ( very small amount ) thus the actual interest would be a little bit more than 8.8 % answer : e ."
Answer: E