Assertion (A): If \(₹\) 7500 is invested at 6 \(\%\) p.a. for 2 years, the amount received with annual compounding will be greater than the amount received without compounding.
Reason (R): Under compounding, interest is calculated on a principal that increases every year, as the previous year's interest is added back to it. Without compounding, interest is always calculated on the same original principal throughout the investment period.
Choose the correct option: