Given,
Circumference of outer circle = 525 m
Let radius of outer circle = R2 m
Let radius of inner circle = R1 m
So,
R2 - R1 = 14 (equation 1)
= 2πR2 = 525
R2 = \(\frac{525}2\times\frac{7}{22}\) = 83.52 m
Put value of R1 in equation first
= 83.52 – R1 = 14
= - R1 = 14 – 83.52
= R1 = 69.52 m
Area of path = \(πR_2^2 - πR_1^2\)

Cost of leveling the path = 6733.76×.50 = Rs 3388