We know that the formula for the nth term is tn=a+(n−1)d, where a is the first term, d is the common difference.
It is given that a company employed 400 persons in the year 2001 and each year increased by 35 persons, therefore, the first term a1=400 and the common difference is 35.
Also, the given nth term is 785, therefore,
tn=a+(n−1)d⇒785=400+(n−1)35⇒785=400+35n−35⇒785=365+35n⇒35n=785−365⇒35n=420⇒n=42035=12
Since, we find that there are 12 terms in the A.P and also it is given that the last term is t12=785.
Hence, in 2012, the number of employees in the company will be 785.