Question

Assertion (A): For the first year, the compound interest (compounded annually) and the simple interest on the same sum at the same rate are equal. Reason (R): In the first year, both interests are calculated on the original principal.

Meera borrowed ₹25,000 from a bank at 8% per annum simple interest. On the same day, she lent the whole amount to her cousin at 8% per annum compound interest, compounded annually. How much does Meera gain (in ₹) at the end of 2 years?