Bhavani spends 68% of her income. Her income increases by 15% and her expenditure increases by 10%. How much is the increase in the percentage of saving? (Use decimal up to 2 digits)

The correct answer is 25.62%.

Step-by-step explanation:

Step 1: Calculate initial expenditure and initial savings.

Let Bhavani's initial income be 100 units.

Since she spends 68% of her income, her initial expenditure is:

$\text{Initial Expenditure}=68\%\text{of}100=68$

Her initial saving is the remaining income after expenditure:

$\text{Initial Saving}=100-68=32$

Step 2: Calculate new income and new expenditure.

Her income increases by 15%:

$\text{New Income}=100+(15\%\text{of}100)=115$

Her expenditure increases by 10%:

$\text{New Expenditure}=68+(10\%\text{of}68)=68+6.8=74.8$

Step 3: Calculate new savings and the absolute increase in savings.

The new saving is:

$\text{New Saving}=115-74.8=40.2$

The increase in saving is:

$\text{Increase in Saving}=40.2-32=8.2$

Step 4: Calculate the percentage increase in savings.

$\text{Percentage Increase in Saving}=\left(\frac{\text{Increase in Saving}}{\text{Initial Saving}}\right)\times 100$

$\text{Percentage Increase in Saving}=\left(\frac{8.2}{32}\right)\times 100=25.625\%$

Rounded up to 2 decimal places as specified in the option, the increase in the percentage of saving is 25.62%.