Solution:
As can be observed from the provided question, Subba Rao’s earnings increase by Rs.200 every year, forming an AP.
As a result, after 1995, the annual salaries are as follows:
5000, 5200, 5400, …
Here, the first term, a = 5000
And the common difference, d = 200
Let’s say his pay is Rs 7000 after n years.
As a result, using the AP nth term formula,
an = a+(n−1) d
7000 = 5000+(n−1)200
200(n−1)= 2000
(n−1) = 10
n = 11
As a result, his salary in the eleventh year will be Rs 7000.