The income of Raman is Rs. 75400. He saves 23% of his income. If his income increases by 27% and expenditure increases by 50%, then his savings will:

Correct option is A

​Given:
Income of Raman = Rs. 75,400
Savings = 23% of income
Income increases by 27%
Expenditure increases by 50%
Formula Used:
Savings = Income − Expenditure
Expenditure = Income − Savings
New income = Old income × (1 + % increase)
New expenditure = Old expenditure × (1 + % increase)
New savings = New income − New expenditure
Percentage change in savings = (Change in savings / Old savings) × 100
Solution:
Old savings$$= \frac{23}{100} \times 75,400 = 17,342 \\$$​​
Old expenditure = 75,400 - 17,342 = 58,058 
New income = $$75,400 \times 1.27 = 95,758$$​​
New expenditure = $$58,058 \times 1.5 = 87,087 \\$$​​
New savings = 95,758 - 87,087 = 8,671 
Change in savings = 8,671 - 17,342 = 8,671