Question
A man buys every year Bank’s cash certificates of value exceeding the last year purchase by Rs. 25. After 20 years, he finds that the total value of the certificates purchased by him is Rs. 7250. Find the values of the certificates purchased by him
(i) In the first year. (ii) In the 13th year.
Solution
Let Rs. a be the value of the certificates purchased by him in the first year and Rs. d be the value of the certificate in excess every year.
∴ d = Rs. 25
Since the value of the certificates purchased by him after 20 years = 7250
∴
2a + 475 = 725 2a = 250 a = Rs. 125
∴ Value of the certificates purchased by him in the first year = Rs. 125 New line Value of the certificates purchased by him in the 13th year = a + (13 - 1)d = 125 + 12(25) = Rs. 425