The expenditure of Sudha is 100% more than her savings. If her expenditure decreases by 2% and savings increase by 10%, then by what percent does her income increase?

Correct option is D

Given:
Sudha's expenditure is 100% more than her savings.
Expenditure decreases by 2%.
Savings increase by 10%.
Concept Used:
Let savings be S . Then, expenditure E =$$S + 100\% \text{ of } S$$​ = 2S.
Income I = E + S = 2S + S = 3S.

New expenditure E' = E - $$2\% \text{ of } E$$​ = 0.98E.

New savings S' = S + $$10\% \text{ of } S$$​ = 1.10S .
New income I' = E' + S' .
Solution:
Let savings S = x . Then, expenditure  E = 2x.
Initial income I = E + S = 2x + x = 3x .
After changes:
New expenditure E' = 0.98$$\times$$​2x = 1.96x .
New savings S' = 1.10x .
New income I' = E' + S' = 1.96x + 1.10x = 3.06x.
​$$\Delta$$​I = I' - I = 3.06x - 3x = 0.06x
​$$\text{Percentage Increase} = \left(\frac{\Delta I}{I}\right) \times 100 = \left(\frac{0.06x}{3x}\right) \times 100 = 2\%$$=0.02

Option (D) is right.
Alternate Solution:​

Let the Saving be 100 

Then, Expenditure = 100% more than 100

= $$100 \times \frac{200}{100} =200$$

If 2% decrease in expenditure = $$200 \times \frac{98}{100} = 196$$

10% increase in saving = $$100 \times \frac{110}{100} = 110$$ 

Initial Income = Expenditure + Savings = 200+ 100 = 300

Final income = 196 +110 = 306 

Increase in income = 306-300 = 6

Increase % = $$\frac{6}{300}\times 100 = 2\% = 0.02$$