Today, I will take up a relatively simple topic Percentages. It is extremely relevant for GMAT and your everyday life.

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t!e critics amongst you, let me give an example" #!at does a $%& sale wit! an additional $'& off on t!e ()' sweater
t!at you !ave your eye on mean to you* +at!er t!an flipping open your ,P-$., /link your eyes and t!e answer will
swim in front of you0 1!!0 I mean, after I tell you w!at you !ave to do in t!at /link 2T!ere is always a catc!34.
5et me /egin /y saying t!at a percentage is a fraction. A fraction w!ere t!e denominator is always -%%, /ut 6ust a fraction
nevert!eless. '%& means '% per 7cent8 2cent /eing -%%4 or '%9-%% or '% out of every -%%.
:o, '%& ; '%9-%% ; <
If I ask you w!at t!e '%& of $=% is, w!at will you do*
2'%9-%%4>$=% or 2-9$4>$=%*
I don8t t!ink I need to explain w!y t!e second representation is easier to !andle. A fraction in its lowest form usually !elps
us to calculate faster. If t!is makes sense, t!ink a/out -$.'& i.e. -$.'9-%%. 5et8s say, I tell you t!at -$.'9-%% is e?ual to
-9). @ow, if you !ad to find -$.'& of A=, w!at would /e easier to do" 2-$.'9-%%4 > A= or 2-9)4 > A=*
or t!is future ease, can you learn up some percent fraction e?uivalents today* In t!e interest of furt!erance of t!is post,
let8s assume you answered wit! a resounding yes3
:o now, if someone asks you, w!at is A%& of B'%, all you s!ould do is 2B9'4 > B'% ; $-%.
#!at if instead, t!e ?uestion is" If you increase -%' /y $%&, w!at do you get*
Cou mig!t /e tempted to find t!e $%& of -%' and add it to -%'. :omet!ing like t!is" -%' D 2$%9-%%4 > -%' ; -%' D $- ;
-$A. Er if you !ave /een paying attention, t!en you mig!t do it like t!is" -%' D 2-9'4 > -%' ; -%' D $- ; -$A.
It is still not optimum3 Cou did t!e calculation in two steps" In step -, you found t!e -9't! of -%'. In step $, you added t!e
-9't! to -%'. .an we instead clu/ it in a single step*
-%' D 2-9'4 > -%' ; -%' 2- D -9'4 ; -%' > 2A9'4
:o w!en we !ave to increase a num/er /y $%&, we 6ust multiply it /y A9'. #!en we !ave to decrease a num/er /y $%&,
we 6ust multiply it /y =9' 2/ecause - -9' ; =9'4. Cou mig!t feel t!at t!ese are little t!ings, not likely to !elp you save
muc! time. Fut once we /uild up on t!ese little t!ings, t!ey work wonders.
5et8s try to decrease -$% /y BB.BB&.
BB.BB& is -9B. When you try to decrease a number by 1/3, you will need to multiply it by (1 1/3) = 2/3. So to decrease
12 by 33.33!, we "ust need to multiply it by 2/3. #e get -$% > 2$9B4 ; )%.
Try to do t!e following orally"
-.#!at is =%& of B$%*
$.#!at do you get w!en you increase B'$ /y BG.'&*
B.#!at do you get w!en you decrease )-H /y --.--&*
T!e most important application of t!is met!od is successive percentage c!anges. 5et8s take an example"
Ixample" In $%%), t!e mem/ers!ip of People8s :ociety was H%,%%%. In $%%H, it increased /y $$.$$&. In $%-%, it
decreased /y H.%H&. #!at was t!e mem/ers!ip at t!e end of $%-%*
:olution" --.--& ; 2-9H4, t!erefore $$.$$& must /e $9H 2multiplying /ot! sides of t!e e?uation /y $4. To increase a
num/er /y $$.$$&, we must multiply it /y --9H 2/ecause - D $9H ; --9H4. Also, H.%H& ; -9--. To decrease a num/er /y
H.%H&, we must multiply it /y -%9-- 2/ecause - -9-- ; -%9--4
Mem/ers!ip at t!e end of $%%H ; H%,%%%>2--9H4
Membership at the end of 2010 = 90,000*(11/9)*(10/11) = 100,000
T!e mem/ers!ip at t!e end of $%%H is t!e mem/ers!ip at t!e /eginning of $%-% 2i.e. H%,%%%>2--9H44 w!ic! decreases /y
H.%H&.
Ence you are comforta/le wit! t!is met!od, you will directly 6ump to t!e step in Fold a/ove