On the first of the year, James invested x dollars at Proudstar bank in an account that yields 1.5% 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 answer
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 1.5*4= 
<gadget id="calculator">1.5*4</gadget>
<output>6</output>
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 6%.   Answer: 6.12%.
<result>B</result>
On the first of the year, James invested x dollars at Proudstar bank in an account that yields 1.5% 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?