A man spends 75% of his income. His income is increased by 20% and he thus also increased his expenditure by 10%. His savings increased by:

Correct option is C

Given:

The man spends 75% of his income initially.
His income is increased by 20%, and his expenditure is increased by 10%..

Let income of a man be 100 Rs. 

Solution:

Expenditure = 75 Rs.

Saving = 25 Rs.

New income = $$100 × \frac{120}{100 }= 120$$​ Rs.

New expenditure = $$75 × \frac{110}{100 }$$​= 82.5 Rs.

New saving = 120 - 82.5 = 37.5 Rs.

Percent increase in saving = $$[\frac{(37.5 - 25)}{25}] × 100$$​​

=> 12.5 × 4 = 50%

∴ The percentage increase in his savings is 50%.