On the first of the year, James invested x dollars at Proudstar bank in an account that yields 3% 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? Select:
A) 22.04 %	B) 16.12 %	C) 12.5 %	D) 18.25 %	E) 10 %

Rationale: per quarter , interest = 3 % so for a year , interest = 12 % due to quarter cumulation , effective yield ( ytm ) would be slight higher than 12 % answer = 12.5 % = answer : c
Answer: C