Solution:
It is given that the total amount saved is 66000 in 20 years, therefore
Let ‘a’ be the amount saved in first year.
Then every year if he increases Rs. 200 every year then in second year the amount will be ‘a + 200’ and in third year it will be ‘a + 400’ and so on.
The sequence so formed will be a, a + 200, a + 400…
The sequence so formed is an AP and their common difference therefore is
As he saved money for 20 years therefore there are 20 terms in the sequence.
By using the formula for AP we obtain
Where the number of terms is ‘n’ and the first term is ‘a’ and the common difference is ‘d’ Given that
As a result, Rs.1400 is the amount saved in first year.