Percentage and its applications  
Your competence with percentages and its application should form a very important part of your armory of CAT 2010 preparation or, for that matter, preparation for any other MBA exam. The concept of percentage will be applied in not only your quant section but also your data interpretation (DI) section. Therefore, master this important concept and make it your habit to calculate percentages mentally. In other words, percentage is a ratio whose second term is equal to 100. For example, 1:4 can be written as 25: 100 or 25%, 3: 8 can be written as 37.5: 100 or 37.5%, 3: 2 can be written as 150: 100 or 150%, and so on. IMPORTANT CONCEPTS ASSOCIATED WITH PERCENTAGE Basic formula of percentage:
Percentage of: Percentage increase/decrease: Percentage increase/decrease when a quantity a
increase/decreases to become another quantity b is Percentage less than/greater than: Have a look at the picture given below: You can see that Johnny is taller than Vicky. What will your answer be if I ask (a) By what percentage is Johnny taller than Vicky? (b) By what percentage is Vicky shorter than Johnny? Answer: Therefore, to find the final quantity after a 20% increase, we can directly multiply the old quantity by a factor of 1.2 and get the new quantity. Similarly, for a 20% decrease, we can multiply the old quantity by 0.8 and get the new quantity. The factors to be multiplied for various percentage increase/decrease are given below: The biggest advantage of using the factors is that for subsequent percentage increase/decrease, we just keep on multiplying the corresponding factors and get the final quantity. Example: 1. The performance bonus of a salesman increases by 10% in the first year, by 20% in the second year, and by 30% in the third year. What is the overall percentage increase in his bonus in 3 years? Answers: Let the bonus at the start of the first year be Rs100. Therefore, to find the final bonus we just multiply by factors. Final bonus = 100 Ã— 1.1 Ã— 1.2 Ã— 1.3 = 171.6. Therefore, overall percentage increase = 71.6% 2. An amount was first reduced by 10% and then further reduced by 20% and Rs10 800 were left. What was the original amount? Answer: Let the original amount be A. Therefore A Ã— 0.9 (factor for 10% decrease) Ã— 0.8 (factor for 20% decrease) = 10 800 Or A = Rs15 000. Â· SOME SOLVED EXAMPLES I shall have to end here and leave the rest of it for my CBT Club students. I shall cover some problems based on this in the CBT Club this week. You might also like: How to Prepare for Data Interpretation for CAT Profit and Loss, Discount 
Re: Percentage and its applications  
Hi tg, Thanks a lot.. ur approach is too good.

Re: Percentage and its applications  
Hi Temperamental, The 85% and 80% are on two different weights. Understand the difference. Total Gadha 
Re: Percentage and its applications  
hi t g, percentage is really a very important chapter for ny m b a exam so pls provide more gud concepts for it............., thnx gr8 work ......... 
Re: Percentage and its applications  
hi tg.i think the answer to Q2 under the topicpercentage increase/decrease is 135,rather than 108. 
Re: Percentage and its applications  
well i think the answer is o.6 M.p= c.p M.p/c.p =5/3 Mpcp/cp=2/3 Mp is 66.67% of cp 
Re: Percentage and its applications  
Hiya TG, Just a slight typographical error....it should be 180 x 0.75 = 135 
Re: Percentage and its applications  
hii the discussion of chapters n methods are really good.. thanx a tonne. 
Re: Percentage and its applications  
Hi , Nikhil I think these assumptions are valid in california only. i will stick to the fact that no. of married males = no. of married females. 
Re: Percentage and its applications  
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Thanks TG for making concept more clear but I would recomment to use some very tough problems which requires use of multiple concepts 
Re: Percentage and its applications  
Hi Abhishek Area/Radius * 100 = (22*21*21*100)/(7*21) = 6600%. or Radius/Area * 100 = (21*7*100)/(22*21*21) = 100/66 = 1.5% 
Re: Percentage and its applications  
Hi Rahul is it the ratio of the october salary to his salary for november 15:1.333 or 1.5:1333 , please let me know? 
Re: Percentage and its applications  
Sorry my mistake.... its (1.5) : (1.333) 
Re: Percentage and its applications  
Hi Rahul Sinha, Is the answer for the 4th question you have posted (Salary & Bonus question) Rs. 295/ approx. ????? Let me know whether it's correct. Rgds, Suren 
Re: Percentage and its applications  
@rahul Ques 4 : 274 approx.. Bonus 
Re: Percentage and its applications  
Ans is in 2 papers (in Maths and Chem) he got more than 80%. Please do let me know whether I m correct or wrong 
Re: Percentage and its applications  
yeah correct.... can you kindly elaborate.... 
Re: Percentage and its applications  
bt i cnt understand ur solution,means these x n ystand for wt?n wt z d formula used... 
Re: Percentage and its applications  
ok...nw i understood... n thts a very good approach indeed... 
Re: Percentage and its applications  
Thnx TG and also, Interstellar Overdrive..... 
Re: Percentage and its applications  
Hi TG sir, can i not get the complete lesson on each topic without joining the TG CBT, these seem to be incomplete lessons on Quant?? Please suggest. 
Re: Percentage and its applications  
how x+y=14/5x????it sholud b 18/5x 
Re: Percentage and its applications  
try to use simple words please.else it makes difficult to understand.. like.. 25% dearer.. as mentioned in one ques.. it make things bit confusing .. 
Re: Percentage and its applications  
Thanks arsh... Got the point 
Ratio & Proportion  
Hi TG, Request you to please write on Ratio & Proportions. It would be of great help. Thanks 
Re: Percentage and its applications  
sir can i take sushants marks as 80% of mohitz..if i take like that i will get mohitzs mark as 1350...pls explain 
Re: Percentage and its applications  
please explain...the proces for 4th question?the one about salary and bonus ! 
Re: Percentage and its applications  
'd' is the correct reply.M=p(xz)/yz 
Re: Percentage and its applications  
Answer to 2nd ques: 200?? 
Re: Percentage and its applications  
ans 4>1500000 