A contract on construction job specifies a penalty for delay of completion beyond a certain dateas follows: Rs. 200 for the first day, Rs. 250 for the second day, Rs. 300 for the third day, etc., the penalty for each succeeding day being Rs. 50 more than for the preceding day. How much money the contractor has to pay as penalty, if he has delayed the work by 30 days
It can be observed that these penalties are in an A.P. having first term as 200 and common difference as 50.
a = 200
d = 50
Penalty that has to be paid if he has delayed the work by 30 days = S30
= 30/2 [2(200) + (30 - 1) 50]
= 15 [400 + 1450]
= 15 (1850)
= 27750
Therefore, the contractor has to pay Rs 27750 as penalty.
