Question

What should be the rate of interest per annum if interest is calculated half yearly ?
a. reduced to half
b. reduced to one fourth
c. is doubled
d. becomes four times​

Answer 1

reduced to one fourth"

if we will calculate interest quarterly, the rate of interest will be divided by one fourth.

For example,

if your annual interest rate = 8 %

divide 8 by 4 to find that the quarterly interest rate is 2 percent.

i.e., 8 × 1/4 = 8/4 = 2%

hope it is helpful ✌️