Narmada deposits Rs 8000 which amounted to Rs. 9200 after 3 yrs of simple…

Step-by-Step Solution

1. Calculate Original Simple Interest:

   • Principal = Rs. 8000

   • Amount after 3 years = Rs. 9200

   • Simple Interest = Amount - Principal = 9200 - 8000 = Rs. 1200.

2. Determine Original Rate of Interest:

   • Using the formula: Simple Interest = (Principal * Rate * Time) / 100

   • 1200 = (8000 * R * 3) / 100

   • 1200 = 240 * R

   • R = 1200 / 240 = 5% per annum.

3. Calculate New Interest with 2% Increase:

   • New Rate = 5% + 2% = 7%

   • New Interest = (Principal * New Rate * Time) / 100

   • New Interest = (8000 * 7 * 3) / 100 = 80 * 21 = Rs. 1680.

4. Calculate Final Amount:

   • Total Amount = Principal + New Interest

   • Total Amount = 8000 + 1680 = Rs. 9680.