Solution:
The given penalties are in the form of an A.P. having the first term as 200 and the common difference as 50, as can be seen.
As a result, a = 200 and d = 50
If the contractor delays the work by 30 days, a penalty must be paid. = S30
Using the formula of sum of nth term, we know,
Sn = n/2[2a+(n -1)d]
As a result,
S30= 30/2[2(200)+(30 – 1)50]
= 15[400+1450]
= 15(1850)
= 27750
As a result, Rs 27750 has to be paid by the contractor as penalty.