Answer:
There is a percentage increase of 77.1% in savings
Explanation:
The answer can be determined by assigning a value to the income of Mr Brown.
Let Mr. Brown's initial income = 100
Percentage spent = 65%
Amount spent = 100 x 0.65 = 65
Percentage he saves = 100 - 65% = 35%
Amount he saves = 100 x 0.35 = 35
Salary after increase = 1.40 x 100 = 140
Increase in expenses = 1.2 x 65 = 78
Amount saved after increase in income = 140 - 78 = 62
Percentage increase = (new amount saved / previous amount saved) - 1
Percentage increase = (62 / 35) - 1 = 0.771 = 77.1%