That's not using the APR percentage, which would be 4.55% for that loan. Had they used that, they would have gotten the correct value. > By the end of the year

That's not using the APR percentage, which would be 4.55% for that loan. Had they used that, they would have gotten the correct value. > By the end of the year, you’re looking at paying $455.02 in interest, rather than the $445 you’d pay if your interest was compounded just once a year instead of daily. They used the wrong percentage and got $445/year. That's off by $10/year. Still, it's close enough to use for yearly financial planning and for judging if the loan is worthwhile. It should be sufficient to prevent any surprises like the article author's.