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?
Choose the correct choice from the following:
A) 2.04% B) 6.12% C) 8% D) 8.25% E) 10%
If the interest were compounded annually instead of quarterly then in one year the interest would be 2.4*4= 
<gadget id="calculator">2.4*4</gadget>
<output>9.6</output>
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: 10%
<result>E</result>
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?