A man spends 75% of his income. His income increases by

A man spends 75% of his income. His income increases by 20% and his expenditure also increases by 10%. Find the percentage increase in his savings.

Let man’s income be Rs. 100.
∴ Expenditure = Rs. 75
Savings = Rs. 25
Case–II,
Man’s income = Rs. 120

Expenditure =	75 × 110	= Rs. 82.5
	100

Savings = 120 – 82.5 = Rs. 37.5

∴ Percentage increase =	37.5 - 25	× 100
	25

=	12.5	× 100 = 50%
	25