Match List – I with List – II. List - I List - II (Avg Period) (A) Am…

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

List - I	List - II (Avg Period)
(A) Amount withdrawn at the beginning of each month	(IV) 6.5 months
(B) Amount withdrawn at the end of each quarter	(III) 4.5 months
(C) Amount withdrawn at the end of each month	(I) 5.5 months
(D) Amount withdrawn in the middle of the month	(II) 6 months

 

* Amount withdrawn at the beginning of each month- 6.5 months.

* Amount withdrawn at the end of each quarter- 4.5 months.

* Amount withdrawn at the end of each month- 5.5 months.

* Amount withdrawn in the middle of the month- 6 months.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When the amount is withdrawn at the first day of each month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
                        = (11+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When the amount is withdrawn at the middle of each month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When the amount is withdrawn at the end of each month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When the amount is withdrawn at the end of each quarter
Average Period = (No. of months left after 1 drawings + No. of months left after last drawings)/2
                         = (9+0)/ 2
                         = 4.5 months