A person saves 25% of his income. If his income increases by 20% and his saving remains the same, then what will be the increased percentage of his expenditure?

$26\frac{2}{3}$

Let initial income = 100

Saving is 25% ,

So , Expenditure =  \(\frac{3}{4}\) × 100 = 75

Increased Income = 100 + \(\frac{1}{5}\) × 100  = 120

( Saving remains same )

So , New  Expenditure = 120 - 25 = 105

Percentage increase in Expenditure = \(\frac{105 - 75}{75}\) × 100

= \(\frac{20}{75}\) × 100

= 26\(\frac{2}{3}\)%