Answer: 0.05% per year
Explanation:
7000 × 0.2 = 1400 = 0.2% interest every 4 years.
0.2 × 0.5 = 0.1 = 0.1% interest every 2 years.
0.1 × 0.5 = 0.05 = 0.05% interest every year.
Now, to prove this we will multiply 0.2 × 0.25, since the half of 0.5 is 0.25:
0.2 × 0.25 = 0.05
Therefore, the answer would be:
0.2% interest every 4 years.
0.1% interest every 2 years.
0.05% interest every year.
Happy to help!