Percentages III

In the context of management entrance exams, Percentages turns out to be one of the most vital topics
not only on account of the number of questions asked in Quantitative Ability section but also due to its far
reaching applications in Data Interpretation section of the exams.

Key concepts discussed:

Percent in the simplest sense is hundredth part or one part in a hundred and symbol for the same
is %.

x%y=

If x% of P is y, then P =

Percentage Increase =

Percentage Decrease =

xy
100

y
100
x

Actual increase
100
Initial value (base)
Actual decrease
100
Initial value (base)

ab

Successive percentage change of a% and b% translates to an effective change of a + b +

% ,
100

where signs of a and b depend on percentage increase or decrease i.e. positive for increase and
negative for decrease.

Highlight: This session deals with an array of lengthy questions which are moderate to difficult in nature.

Session

Percentages

The questions discussed in the session are given below along with their source.
Q1.

For constructing the working class consumer price index number of a particular town, the following
weights corresponding to different group of items were assigned:
Food - 55, Fuel - 15, Clothing - 10, Rent - 8 and Miscellaneous - 12
It is known that the rise in food prices is double that of fuel and the rise in miscellaneous group
prices is double that of rent. In October 2006, the increased D.A. by a factory of that town by 182%
fully compensated for the rise in prices of food and rent but did not compensate for anything else.
Another factory of the same locality increased D.A. by 46.5% which compensated for the rise in fuel
and miscellaneous groups.
Which is the correct combination of the rise in prices of food, fuel, rent and miscellaneous groups?
(a) 320.14, 159.57, 95.64, 166.82
(b) 317.14, 158.57, 94.64, 189.28
(c) 311.14, 159.57, 90.64, 198.28
(d) 321.14, 162.57, 84.46, 175.38
(IIFT 2008-10)

Q2.

In 2006, Raveendra was allotted 650 shares of Sun Systems Ltd in the initial public offer, at the face
value of Rs.10 per share. In 2007, Sun Systems declared a bonus at the rate of 3:13. In 2008, the
company again declared the bonus at the rate of 2:4. In 2009,the company declared a dividend of
12.5%. How much dividend does Raveendra get in 2009 as the percentage of his initial investment?
(a) 24.5%
(b) 23.9%
(c) 24.1%
(d) 23%
(IIFT 2010-12)

Q3.

Bennett distribution company, a subsidiary of a major cosmetics manufacturer Bavlon, is forecasting

the zonal sales for the next year. Zone I with current yearly sales of Rs.193.8 lakh is expected to
achieve a sales growth of 7.25%; Zone II with current sales of Rs.79.3 lakh is expected to grow by
8.2%; and Zone III with sales of Rs. 57.5 lakh is expected to increase sales by 7.15%. What is the
Bennetts expected sales growth for the next year?
(a) 7.46%
(b) 7.53%
(c) 7.88%
(d) 7.41%
(IIFT 2010-12)

Q4.

M/s. Devi Radiograms, a shop which sells electronic gadgets, marks its merchandise 35% above
the purchase price. Until four months ago, purchase price of one Philips DVD player was Rs.3000.
During the last four months M/s. Devi Radiograms has received four monthly consignments of
Philips DVD player at the purchase price of Rs.2750, Rs.2500,Rs.2400, and Rs.2250. The average
rate of decrease in the purchase price of DVD player during these four month is:
(a) 7.51%
(b) 8.20%
(c) 6.94%
(d) 7.03%
(IIFT 2010-12)

Percentages

Session

Q5.

The annual production in cement industry is subject to business cycles. The production increases
for two consecutive years consistently by 18% and decreases by 12% in the third year. Again in the
next two years, it increases by 18% each year and decreases by 12% in the third year. Taking 2008
as the base year, what will be the approximate effect on cement production in 2012?
(a) 24% increase
(b) 37% decrease
(c) 45% increase
(d) 60% decrease
(IIFT 2013-15)

Q6.

In view of the present global financial crisis, the Finance Minister decided to slash the excise duties
to boost demand and propel economic growth. The excise duty on cement was reduced by 30% of
its present amount to boost the spending in the infrastructure. What should be the percentage
increase in the consumption of cement so that the revenue of the government remains unchanged?
(a) 42

5
%
7

(b) 42

6
%
7

(c) 34

6
%
7

(d) 34

5
%
7
(FMS 2009)

Session

Percentages