Raman spends 80% of his income. If his income is increased by 25% and the expenditure increase by 10%, then what will be the percentage increase in his savings?

Let total income of Raman = Rs. $$100x$$

Amount spent = $$\frac{80}{100}\times100x=Rs.$$ $$80x$$

=> Amount saved = $$100x-80x=Rs.$$ $$20x$$

If, income is increased by 25%, => New income = $$\frac{125}{100}\times100x=Rs.$$ $$125x$$

Similarly, new expenditure = $$\frac{110}{100}\times80x=Rs.$$ $$88x$$

=> Amount saved = $$125x-88x=Rs.$$ $$37x$$

$$\therefore$$ % increase in his savings = $$\frac{37x-20x}{20x}\times100$$

= $$17\times5=85\%$$

=> Ans - (D)