The monthly income of Ramesh in year 2021 was ₹18,600 and his monthly expenditure was ₹12,400. In year 2022 his income increased by 15% and his expenditure increased by 8%. Find the percentage increase in his savings.

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Step 1: Calculate savings in 2021.
Savings_2021 = Income_2021 - Expenditure_2021 = 18600 - 12400 = ₹6200

Step 2: Calculate income and expenditure in 2022.
Income_2022 = 18600 + 15% of 18600 = 18600 + (0.15 × 18600) = 18600 + 2790 = ₹21390
Expenditure_2022 = 12400 + 8% of 12400 = 12400 + (0.08 × 12400) = 12400 + 992 = ₹13392

Step 3: Calculate savings in 2022.
Savings_2022 = Income_2022 - Expenditure_2022 = 21390 - 13392 = ₹7998

Step 4: Calculate percentage increase in savings.
Increase = Savings_2022 - Savings_2021 = 7998 - 6200 = ₹1798
Percentage increase = (Increase / Savings_2021) × 100 = (1798 / 6200) × 100 ≈ 29%

Therefore, the percentage increase in savings is approximately 29%.

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