A person’s monthly income is ₹ 5000 and increases by 30%. What is the new monthly income?

Introduction / Context:
This is a simple percentage increase problem, illustrating direct scaling of a base value by a given rate. Such questions are common in salary and price adjustments.

Given Data / Assumptions:

• Original monthly income = ₹ 5000.
• Increase = 30% of original.

Concept / Approach:
New income = Original * (1 + rate). For a 30% increase, multiply by 1.30. Ensure the base is the original amount, not the increment.

Step-by-Step Solution:
Increase = 0.30 * 5000 = 1500New income = 5000 + 1500 = 6500

Verification / Alternative check:
Direct scaling: 5000 * 1.30 = 6500. Same result.

Why Other Options Are Wrong:
₹ 7000 implies a 40% increase; ₹ 5500 implies 10%; ₹ 4500 is a decrease; ₹ 6000 is 20% increase, not 30%.

Common Pitfalls:
Adding 30 to 5000 (confusing percent with absolute units). Always convert the percent to a proportion of the base.

Final Answer:
₹ 6500