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?	Choices:
A) 22.04%  B) 26.12%  C) 28%  D) 16.25%  E) 30%
Per quarter, interest = 4% So for a year, interest = 16% 16.25%ue to quarter cumulation, effective yield (YTM) would be slight higher than 16.25% Answer = 16.25% =ANSWER:16.25%
<result>D</result>
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?