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Match List-I with List-II

List-IList-II
(A) Nominal rate of return(I) EMI=Principal+InterestPeriod in monthsEMI=\frac{Principal+Interest}{Period\ in\ months}
(B) CAGR(II) Original value of the asset−Salvage value of the assetUseful life of the asset\frac{Original\ value\ of\ the\ asset-Salvage\ value\ of\ the\ asset}{Useful\ life\ of\ the\ asset}
(C) Flat rate method(III) Current market value of investment−Original investment valueOriginal investment value×100\frac{Current\ market\ value\ of\ investment-Original\ investment\ value}{Original\ investment\ value}\times100
(D) Annual depreciation(IV) (Investment at the end of investment periodInvestment at the beginning of the period)1investment period−1\left(\frac{Investment\ at\ the\ end\ of\ investment\ period}{Investment\ at\ the\ beginning\ of\ the\ period}\right)^{\frac{1}{investment\ period}}-1

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 1

Nominal rate of return compares the gain with the original investment, so (A)-(III).

CAGR uses the nn-th root of the ratio of final to initial value, so (B)-(IV).

The flat rate method computes EMI as principal plus interest divided by the number of months, so (C)-(I).

Leaving straight-line depreciation as (D)-(II).

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