**Effective Rate of Interest**

The effective rate of interest is the actual interest rate earned or paid on an investment or loan over a specific period, taking into account the effects of compounding. It is calculated by considering the nominal interest rate and the frequency of compounding.

**Nominal Rate of Interest**

The nominal rate of interest is the stated interest rate per annum, without taking into account the effects of compounding. In this case, the nominal rate of interest is given as 7% per annum.

**Compounding Frequency**

The compounding frequency refers to the number of times the interest is compounded within a year. In this case, the interest is compounded quarterly, which means it is compounded four times in a year.

**Formula for Effective Rate of Interest**

The formula to calculate the effective rate of interest is:

Effective Rate of Interest = (1 + (Nominal Rate / Compounding Frequency))^Compounding Frequency - 1

**Calculation**

Using the given values, we can calculate the effective rate of interest as follows:

Nominal Rate = 7% per annum
Compounding Frequency = Quarterly (4 times in a year)

Effective Rate of Interest = (1 + (7% / 4))^4 - 1

= (1 + 0.0175)^4 - 1

= (1.0175)^4 - 1

= 1.0716 - 1

= 0.0716

= 7.16%

Therefore, the effective rate of interest for one year corresponding to a nominal rate of 7% per annum, compounded quarterly, is 7.16%.

**Conclusion**

The effective rate of interest takes into account the effects of compounding and provides a more accurate measure of the actual interest earned or paid on an investment or loan. In this case, the effective rate of interest is 7.16%, which is higher than the nominal rate of 7% due to the quarterly compounding.