Answer
$ 5.095\%$
Work Step by Step
Apply the Effective Rate of Interest Theorem:
The effective rate of interest $r_{e}$ of an investment earning an annual interest rate $r$ is given by
Compounding $n$ times per year: $\displaystyle \quad r_{e}=\left(1+\frac{r}{n}\right)^{n}-1$
Continuous compounding: $\quad \quad r_{e}=e^{r}-1$
---
Compounding $n=4$ times per year$, \quad r=0.05,$
$ r_{e}=\displaystyle \left(1+\frac{0.05}{4}\right)^{4}-1\approx 0.050945\approx 5.095\%$
