Correct option is A
Solution:
Assertion (A) is TRUE. For the same principal, rate, and time, compound interest (CI) ≥ simple interest (SI). They become equal only when time = 1 year or rate = 0%.
Reason (R) is TRUE. Compound interest works by adding interest to principal at regular intervals (annual, semi-annual, etc.), which creates interest on interest — the reason why CI > SI.
R correctly explains A.
Correct Answer: (a)