Option 2 : 60%

**Given:**

Karan’s salary = Rs. 45000

Karan’s expenditure = 70%

Karan’s salary raise = 25%

Karan’s expenditure increase = 10%

**Concept used:**

Income = Expenditure + Savings

**Calculations:**

Since the percentage change is required then salary is insignificant and the salary could also be assumed accordingly.

Let Karan’s salary be Rs. 100

Karan’s savings = Salary – Expenditure = Rs. 30

Karan’s salary after raise = 100 + 25 × 100/100

= Rs. 125

Karan’s expenditure after increase = 70 + 10 × 70/100 = Rs. 77

Karan’s new savings = 125 – 77 = Rs. 48

Karan’s savings% change = (48 – 30) × 100/30

= 60%

**∴ Karan’s percentage change in savings is 60%**

**Short trick / Topper’s Approach:**

Karan’s saving percentage = (125 – 77) × 100/30 – 1

= 60%