On the first of the year, James invested x dollars at Proudstar bank in an account that yields 2.4% 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) 2.04 %
B) 6.12 %
C) 8 %
D) 8.25 %
E) 10 %

Rationale: "if the interest were compounded annually instead of quarterly then in one year the interest would be 2.4 * 4 = 9.6 % . 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 9.6 % , answer : e"
Answer: E