Successive monthly increases: An employee’s salary increases every month by 4%. If his salary in August was ₹6,300, what is his approximate salary in October of the same year?

Introduction / Context:
This is a successive percentage increase problem (compound growth). Two monthly increases of 4% are applied to reach October from August (August → September → October).

Given Data / Assumptions:

• August salary = ₹6,300.
• Monthly increase = 4%.
• Two steps of increase to reach October.

Concept / Approach:
Use the compound growth factor (1.04) for each month. After two months, the multiplier is (1.04)^2. Then round to the nearest rupee if required by the options.

Step-by-Step Solution:

Verification / Alternative check:
Direct two-step factor: October = 6300 * (1.04)^2 = 6300 * 1.0816 = 6814.08. Same result.

Why Other Options Are Wrong:

• ₹6552: That is September’s salary, not October’s.
• ₹6627 and ₹6967: Do not correspond to exactly two 4% increases from ₹6300.

Common Pitfalls:
Applying a flat 8% once (ignoring compounding) would give 6300*1.08 = 6804, close but not equal. Successive increases require multiplying by 1.04 twice.

Final Answer: