Surbhi spends 75% of her income. If her income increases by 20% and savings decrease by 1%, then the percentage increase in her expenditure is:

Let the income of Surbhi = 100

Surbhi spends 75% of her income

Expenditure of Surbhi = 75

Savings of Surbhi = 25

Income increases by 20%,

$$\Rightarrow$$  The new income of Surbhi = 120

Savings decrease by 1%

$$\Rightarrow$$  New savings = $$\frac{99}{100}\times$$25 = $$\frac{99}{4}$$

New Expenditure = New Income - New savings = 120 - $$\frac{99}{4}$$ = $$\frac{381}{4}$$

Increase in expenditure = $$\frac{381}{4}$$ - 75 = $$\frac{81}{4}$$

$$\therefore\ $$Percentage increase in expenditure = $$\frac{\frac{81}{4}}{75}\times$$100 = $$\frac{81}{4\times75}\times$$100 = 27%

Hence, the correct answer is Option D