Match List-I with List-II
| List-I | List-II | ||
| (A) | Perpetuity | (I) | A person deposits a fixed amount every year in his bank account to renovate his house after 10 yrs. |
| (B) | EMI | (II) | A person deposits an amount regularly in his bank account and withdraws in case of need. |
| (C) | Sinking Fund | (III) | A fixed amount is debited from the bank account of a person, every month, against a personal loan. |
| (D) | Saving Account | (IV) | A person purchased a house and rents it out. |
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(IV), (B)-(III), (C)-(I), (D)-(II)
(A) Perpetuity
This matches (IV) A person purchased a house and rents it out.
A perpetuity is a series of equal payments that goes on for ever; the rent from a house that the owner keeps is such a series.
(B) EMI
This matches (III) A fixed amount is debited from the bank account of a person, every month, against a personal loan.
An equated monthly instalment is the fixed monthly payment that repays a loan with interest.
(C) Sinking Fund
This matches (I) A person deposits a fixed amount every year in his bank account to renovate his house after 10 yrs.
A sinking fund is built up by fixed periodic deposits to meet a known expense at a future date.
(D) Saving Account
This matches (II) A person deposits an amount regularly in his bank account and withdraws in case of need.
A savings account allows deposits and withdrawals whenever needed.
So the matching is (A)-(IV), (B)-(III), (C)-(I), (D)-(II).