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Suppose that you have a bank account with a balance of $4,516.10 at the beginning of...

Suppose that you have a bank account with a balance of $4,516.10 at the beginning of the year and $4,566.10 at the end of the year. Your bank advertises "continuous compounding," but in fact, it compounds continuously over each 24-hour day and posts interest to accounts daily. (Round your answers to two decimal places.)

a)What effective rate did you receive?

%

(b)What nominal rate is the calculation based on?

%

(c)What difference is there between what the bank is doing and true continuous compounding?

In this case, the absolute value of the difference in the final amounts earned is $

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