Problem
Many mortgages are computed using a 360-day year, and all months are assumed to have 30 days. Interest is computed as though all payments arrive on the first of the month, so that this is equivalent to monthly compounding. What is the effective interest rate if the nominal interest rate is 8.375%?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.