Match List – I with List – II. List - I(Equal amount of drawings made…

The correct answer is Option (4) → (A)-(IV), (B)-(III), (C)-(II), (D)-(I)

When equal amounts are drawn at regular intervals, interest is charged on the total drawings for the average period = (months for which the first drawing is outstanding + months for the last drawing) ÷ 2.

(A) At the end of each half year — this matches (IV) 3 months.
First drawing (30 September) is outstanding for 6 months, the last (31 March) for 0 months.
(6 + 0) ÷ 2 = 3 months

(B) At the beginning of each quarter — this matches (III) 7.5 months.
First drawing (1 April) is outstanding for 12 months, the last (1 January) for 3 months.
(12 + 3) ÷ 2 = 7.5 months

(C) At the beginning of each month — this matches (II) 6.5 months.
First drawing is outstanding for 12 months, the last (1 March) for 1 month.
(12 + 1) ÷ 2 = 6.5 months

(D) At the end of each quarter — this matches (I) 4.5 months.
First drawing (30 June) is outstanding for 9 months, the last (31 March) for 0 months.
(9 + 0) ÷ 2 = 4.5 months