On the first of the year, James invested x dollars at Proudstar bank in an account that yields 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?
Pick one:  A) 22.04 %  B) 26.12 %  C) 28 %  D) 16.25 %  E) 30 %

Rationale: per quarter , interest = 4 % so for a year , interest = 16 % due to quarter cumulation , effective yield ( ytm ) would be slight higher than 16.25 % answer = 16.25 % = answer : d
Answer: D