\begin{tabular}{|l|}\hline A. R5 500 \ Simple interest $$ 8 \% $$ for 4 years \ \hline B. R5 500 \ Compound interest $$ 7.5 \% $$ for 3 years \ \hline\end{tabular}

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We have two investment options:

A. R5,500 with simple interest at 8% for 4 years  
B. R5,500 with compound interest at 7.5% for 3 years

Let’s calculate the final amount for each:

────────────────────────────  
Option A (Simple Interest):

Simple interest is calculated using the formula:  
  Interest = Principal × Rate × Time

Here,  
  Principal = R5,500  
  Rate = 8% = 0.08  
  Time = 4 years

Step 1: Compute the interest  
  Interest = 5500 × 0.08 × 4 = 5500 × 0.32 = R1,760

Step 2: Compute the total amount  
  Total Amount = Principal + Interest = 5500 + 1760 = R7,260

────────────────────────────  
Option B (Compound Interest):

Compound interest is calculated using the formula:  
  Total Amount = Principal × (1 + Rate)^Time

Here,  
  Principal = R5,500  
  Rate = 7.5% = 0.075  
  Time = 3 years

Step 1: Compute the compound factor  
  (1 + Rate)^Time = (1 + 0.075)^3 ≈ (1.075)^3

Calculating (1.075)^3 step‐by‐step:  
  First, square 1.075:  1.075² ≈ 1.155625  
  Then, multiply by 1.075: 1.155625 × 1.075 ≈ 1.2423

Step 2: Compute the total amount  
  Total Amount ≈ 5500 × 1.2423 ≈ R6,832.65

────────────────────────────  
Summary:

• Option A (Simple Interest for 4 years): R7,260  
• Option B (Compound Interest for 3 years): Approximately R6,832.65

Thus, Option A provides the higher return.
Option A yields R7,260, while Option B yields approximately R6,832.65. Therefore, Option A is better.

\begin{tabular}{|l|}\hline A. R5 500 \\ Simple interest \( 8 \% \) for 4 years \\ \hline B. R5 500 \\ Compound interest \( 7.5 \% \) for 3 years \\ \hline\end{tabular}

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