A man spends 75% of his income. His income increased by 20% and he increased his expenditure by 15%. His savings will then be increased by :

A. 33%

B. $$33\frac{1}{3}$$%

C. 35%

D. 40%

Answer: Option C

Solution(By Examveda Team)

Let the income of the man = Rs. 100
∴Intial Expenditure = Rs.75
Now new income become = 100 + 20% of 100 = Rs. 120
New Expenditure = 75 + 15% of 75 = Rs.86.25
Intial Saving = 100 - 75 = Rs. 25
New Saving = 120 - 86.25 = Rs. 33.75
Required percentage increase :
= $$\frac{(33.75 - 25)}{25}$$   × 100
= 35%