Posted by cory on .
explain why a savings and loan association that pays a nominal rate of 4.5% interest, compounded daily, actually pays an effective rate of 4.6%.

personal finance 
drwls,
Because of daily compounding, the accumulated interest at the end of a year is 4.602%, not 4.5%.
Actual APR = (1+.045/365)^365 = 1.04602