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 ?
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
multiply(0.5, const_4)