Raman spends 50 percent of his income. If his income increases by 10 percent and the expenditure also increases by 10 percent, then what will be the percentage increase in his savings?

10 percent

Let income of Raman = 100x

Expenditure = 50% of 100x = 50x

Savings = 50x

New Income = 100x + 10% of 100x = 110x

New expenditure = 50x + 10% of 50x = 55x

Saving = 100x -55x = 55x

Increase percentage in saving = \(\frac{55x - 50x }{50x}\) × 100 = 10%