A man spends 60% of his income and saves the remaining. His income increases by 18% and his expenditure also increases by 30%. Find the percentage increase in his savings.

No change

Assume present income be P

Expenditure is 60% E = 0.6P

Savings = 0.4P

Increased income is 18% P' = 1.18P

Increased Expenditure to 30% E' = 1.3E = 1.30*0.6P = 0.78P

New Savings = 1.18P - 0.78P = 0.4P

The correct answer is Option (4) → No change