On the first of the year, James invested x dollars at Proudstar bank in an account that yields 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? Choices
A) 2.04 %
B) 6.12 %
C) 8 %
D) 8.25 %
E) 10 %

Rationale: "per quarter , interest = 2 % so for a year , interest = 8 % due to quarter cumulation , effective yield ( ytm ) would be slight higher than 8 % answer = 8.25 % = answer : d"
Answer: D