The income of Raman is ₹43,500. He saves 17% of his income. If his income increases by 18% and expenditure increases by 20%, then his savings will:

Correct option is A

Given
Initial Income = ₹43500
Savings percentage = 17%
Income increase = 18%
Expenditure increase = 20%
Formula Used
Income = Expenditure + Savings
Solution
Let initial income be 100x.
Initial Savings = 17x
Initial Expenditure = 100x - 17x = 83x
New Income = $$100x \times 1.18 = 118x$$​​
New Expenditure = $$83x \times 1.20 = 99.6x$$​​
New Savings = 118x - 99.6x = 18.4x
Increase in Savings = 18.4x - 17x = 1.4x
Since 100x = 43500, the actual increase is 1.4% of the initial income.
Increase = $$\frac{1.4}{100} \times 43500 = 609$$​​
The savings will increase by ₹609.
Final Answer
So the correct answer is (a)