Assertion (A) : On ₹ 8,750 at 8% p.a., the simple interest for 1^st year is equal to the simple interest for 4^th year.

Reason (R) : Simple interest for 4^th year = Amount at the end of 4^th year - original sum.

1. Both A and R are correct, and R is the correct explanation for A.

2. Both A and R are correct, and R is not the correct explanation for A.

3. A is true, but R is false.

4. A is false, but R is true.

Divide ₹ 10,800 into two parts so that if one part is put at 18% per annum S.I. and the other part is put at 20% p.a. S.I. the total annual interest is ₹ 2,060.

Find the amount and the compound interest on ₹ 16,000 for 3 years at 5% per annum compounded annually.