Which of the following statements are correct?

(A) A fund which is created to accumulate money over the years to discharge a future obligation is called a sinking fund.
(B) The amount or future value of perpetuity is well-defined.
(C) The sinking fund be used in any emergency.
(D) An equated monthly installment is a fixed payment made by a borrower to a lender at a specific date every month to clear off the loan.

Choose the correct answer from the options given below:

(A) and (D) only

The correct answer is Option (2) → (A) and (D) only

Analysis of statements:

(A) ✔ Correct. A sinking fund is created to accumulate money over time to meet a future liability.

(B) ✖ Incorrect. The future value of a perpetuity is not finite unless discounted at a positive rate; its present value is finite.

(C) ✖ Incorrect. A sinking fund is meant for a specific obligation and generally cannot be used for emergencies.

(D) ✔ Correct. An equated monthly installment (EMI) is a fixed monthly payment to clear a loan.