A person saves 45% of his income. Next year, his income increases by 200%. He increases his savings by five times the previous year’s savings. By what percentage (correct to one place of decimal) has he increased/decreased his expenditure?

Correct option is D

Given:
A person spends 45% of his income.
Income is increased by 200% and he increases savings by 5times
Formula Used:
Saving = Income - Expenditure
​$$\text{Percentage} = \frac{\text{Increase/Decrease in Expenditure}}{\text{Initial Expenditure}} \times 100$$​​
Solution:
Let income be Rs 100.
Saving = 45% of 100 = Rs. 45
Expenditure = 100-45 = Rs. 55
Income increased by 20%
New income = 100 + 200% of 100 = Rs. 300
Saving increases by 5times = 225
New expenditure = 300-225 = Rs. 75
Change in expenditure = 75 -55 = Rs. 20
Percentage = $$\frac{20}{55} \times 100 = 36.37\%$$