Money Market Hedge (BPP Dec 2016 Mock exam)

Hi sir,

May I ask for Section B Q16 of the Dec 2016 paper (pg 293 of BPP Kit), why do we not need to divide the interest rates used by 2?

The question stated six-month interest rates as 4% (Borrow Dinars) and 0.5% (Deposit dollars). But why do we not use 2% and 0.25% instead?

Thank you in advance!