Correct Answer: 50%
Explanation:
Let income = Rs. 100 Then expenditure = Rs. 75 and saving = Rs. 25 New expenditure = 110% of Rs. 75 = Rs. 165 / 2 New saving = Rs. (120 - 165/2) = Rs. 75/2 Increase in saving = Rs. (75/2 - 25) = Rs. 25/2 ∴ Increase% = (25/2) x (1/25) x 100% = 50%