# How much saving increased?

Ramu spends 75% of his income. His income is increased by 20% and he has increased his expenditure by 10 %. His Saving are increased by:

- 40%
- 50%
- 30%
- 25%

**Answer: (2) 50%**

**Solution:-
**Let the original income=Rs.100 .

Then , expenditure=Rs.75 and savings =Rs.25

New income =Rs.120 , New expenditure => Rs.((**110**/100) x 75)=Rs.165/2

New savings = Rs.(120-(165/2)) = Rs.75/2

Increase in savings = Rs.((75/2)-25)=Rs.25/2

Increase %= ((25/2) x (1/25) x 100)% = 50%.

Hence, the correct answer is option (2) 50%.