A person is appointed on a basic pay of 1,000 per month and gets an increment of Rs 50 per year. He contributes 10% of his salary to Providend Fund. What will be his total contribution to Providend Fund during his 25 years of service?

Explanation

Salary of the person for the first year ` = 1000**12 = 12000` Rs

He gets an increment of `50` Rs per year for `25` years.

So, it is an `A.P.` with `25` terms.

So, `A.P.` will be,

`12000,12050,12100...`

Here, first term `(a) = 12000` and common difference `(d) = 50`

`:. S_25 = 25/2(2a+(25-1)d) = 25/2(24000+1200) = 315000` Rs

So, his `25` year salary is `315000` Rs.

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