Correct option is D
Given:
The expenditure of Sudha is 125% more than her savings. If expenditure decreases by 14% and savings increase by 38%.
Formula Used:
Income = Expenditure + Savings
Solution:
Let savings = 100
Expenditure = 100+ 125% of 100 = 225
Initial income = 225 + 100 = 325
New expenditure = 225 - 225 of 86% = 193.5
New savings = 100 + 38% of 100 = 138
New income = 193.5 + 138 = 331.5
Increase = 331.5 − 325 = 6.5
% increase = × 100 = 2%