Answer:
Step-by-step explanation:
Given that Rachel now owes a quarter of the money that she once owed,
This implies that originally if he owns some amount say P dollars, now his loan is reduced to 1/4 of original hence now outstanding is P/4
So out of the four options given, first option is wrong because division to be done.
III is wrong because subtraction is not right.
IV is wrong since when reduced addition is not right
Only 2nd option is right.
Divide what she owed by 4.