A man's income increases by 21% and his expenditure increases by 9%. If his initial income was ₹45,000 and expenditure ₹27,000, find the percentage increase in savings.

Correct option is A

Given:
Initial income = ₹45,000
Initial expenditure = ₹27,000
Income percentage increase = 21%
Expenditure percentage increase = 9%
Formula Used:
Savings = Income - Expenditure
Percentage Increase = $$\frac{Increase\ in\ Savings}{Initial\ Savings}$$​ × 100
Solution:
First, calculate the initial savings:
45000 - 27000 = 18000
Next, calculate the new income after a 21% increase:
45000 + 45000 × $$\frac{21}{100}$$​ = 45000 + 9450 = 54450
Calculate the new expenditure after a 9% increase:
27000 + 27000 × $$\frac{9}{100}$$​ = 27000 + 2430 = 29430
Calculate the new savings:
54450 - 29430 = 25020
Calculate the increase in savings:
25020 - 18000 = 7020
Calculate the percentage increase in savings:
$$\frac{7020}{18000}$$​ × 100 = 39
The percentage increase is 39%.
Final Answer
So the correct answer is (a)