On the first of the year, James invested x dollars at Proudstar bank in an account that yields 0.5% 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 option.
A) 2.04 %	B) 4.12 %	C) 5 %	D) 8.25 %	E) 10 %

Rationale: per quarter , interest = 0.5 % so for a year , interest = 2 % due to quarter cumulation , effective yield ( ytm ) would be slight higher than 2 % answer = 2.04 % = answer : a
Answer: A