Answer:
Yes, Naomi is correct
Step-by-step explanation:
Explanation: For explain this we can consider an example - Let us suppose Naomi deposited 100 rupees in her saving account at the rate 6% for 1 year .
Now, if the interest is quarterly then according to the formula
compound interest = -P where r is the rate annually and n is the number of years.
so CI= -100 ( here the rate is already given in quarterly)
CI= -100= 1.26247696-100=26.247696 rupees=26(approx)
Now, if the compound interest is 1.25 per month then again from the formula-
CI=-P
CI= -100= 100(1.16075452)-100=16.075452=16(approx)
