Answer:Yes, Naomi is incorrect.
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 =[tex]P(1+\frac{r/4}{100} )^{4n}[/tex] -P where r is the rate annually and n is the number of years.
so CI=[tex]100(1+\frac{6}{100})^4[/tex] -100 ( here the rate is already given in quarterly)
CI= [tex]100(1.06)^4[/tex]-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=[tex]P(1+\frac{r/12}{100})^{12n}[/tex]-P
CI= [tex]100(1+\frac{1.25}{100})^{12}[/tex]-100= 100(1.16075452)-100=16.075452=16(approx)
