The monthly income of a person was Rs12,000 and his monthly expenditure was Rs10,000. In the next year, his income increased by 12% and his expenditure by 5%. Find the percentage increase in his savings.

47%

Initial Income = 12000

Expenditure = 10000

Saving = 12000 - 10000 = 2000

New Income = 12000 + 12% of 12000 = 13440

New Expenditure = 10000 + 5% of 10000 = 10500

New saving = 13440 - 10500 = 2940

Increase in saving = 2940 - 2000 = 940

Required percentage = \(\frac{940}{2000}\) × 100 = 47%