Compute the effective rate of interest given the nominal rate of 7 3/8% compounded monthly
let the effective annual rate be i
then
1+i = (1 + .07375/12)^12
1+i = 1.07629
so the effective rate is 7.629 %
then
1+i = (1 + .07375/12)^12
1+i = 1.07629
so the effective rate is 7.629 %