Mr. X has a monthly income of 26,500 dollor and his monthly expenditure is 20,500 dollor. The next year, his salary is increased by 12% and expenditure is increased by 6%. His savings increase by how much percent?

32.5%

Original saving =  ( 26500 - 20500 ) =  6000

New income = original income + increase income

= 26500 + 12 % of 26500

= 29680

New expenditure = original expenditure + increase expenditure

= 20500 + 6% of Rs 20500

= 21730

New saving = new income – new expenditure

= ( 29680 - 21730 )

= 7950

Change in saving = new saving – original saving

= ( 7950 - 6000 )

= 1950

Percentage of increase in his saving = \(\frac{1950}{6000}\) × 100 = 32.5%