Correct option is B
Given
Initial income = ₹68,800
Initial savings percentage = 18.5%
Income increase = 17%
Expenditure increase = 25%
Formula Used
Income = Expenditure + Savings
Solution
Initial Savings = 68800 ×
Initial Expenditure = 68800 - 12728 = 56072
New Income = 68800 ×
New Expenditure = 56072 ×
New Savings = 80496 - 70090 = 10406
Change in Savings = 12728 - 10406 = 2322
Since the new savings are less than the initial savings, there is a decrease of ₹2,322.
Final Answer
So the correct answer is (b)