The ratio of expenditure and savings of a person is 5 : 3. If the incomeincreases by 20% and the expenditure increases by 10%, then the person’s savings increase by:

As per the given question,

The ratio in the expenditure and saving =5:3
So, let the expenditure =5x and saving =3x
So, income =5x+3x=8x

Now, income getting increase by 20% hence new income will be $$=\dfrac{120\times 8x}{100}=9.6x$$

expenditure is getting increase by 10%, hence new expenditure$$=\dfrac{5x\times 110}{100}=5.5x$$
Hence, new saving $$=9.6x-5.5x=4.1x$$

Hence, increase in the saving $$=\dfrac{(4.1x-3x)\times 100}{3x}=\dfrac{1.1x\times 100}{3x}=36\dfrac{2}{3}\%$$