On the first of the year, James invested x dollars at Proudstar bank in an account that yields 2.5% 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 correct choice
A) 22.04 %	B) 16.12 %	C) 8 %	D) 18.25 %	E) 10.5 %

Rationale: per quarter , interest = 2.5 % so for a year , interest = 10 % due to quarter cumulation , effective yield ( ytm ) would be slight higher than 10 % answer = 10.5 % = answer : e
Answer: E