Match List I with List II in context of average period for calculatin…

The correct answer is option 4- A-III, B-II, C-I, D-IV.

LIST I	LIST II
A) First day of every month	III) 6.5 months
B) Middle of every month	II) 6 months
C) End of every month	I) 5.5 months
D) Beginning of each quarter	IV) 7.5 months

Average period is calculated for calculating interest on drawings and the average period depends on the timing of withdrawal.
The formula for calculating the average period is = (Months left after Ist drawing + Months left after last drawing) / 2
After calculating the average period interest on drawings is calculated. The formula for calculating interest on drawing is = Total drawings X Rate of interest/100 X Average period/12

When the amount is withdrawn at the first day of each month
Average Period = (No. of months left after 1 drawings + No. of months left after last drawings)/2
                        = (12+1)/ 2
                        = 6.5 months

When the amount is withdrawn at the middle of each month
Average Period = (No. of months left after 1 drawings + No. of months left after last drawings)/2
                        = (11.5+0.5)/ 2
                        = 6 months

When the amount is withdrawn at the end of each month
Average Period = (No. of months left after 1 drawings + No. of months left after last drawings)/2
                         = (11+0)/ 2
                         = 5.5 months

When the amount is withdrawn at the first day of each quarter
Average Period = (No. of months left after 1 drawings + No. of months left after last drawings)/2
                        = (12+3)/ 2
                        = 7.5 months