Math: Number Theory - Percents

Generic questions based on percentages that can be remembered:

1. If the price(p) of an Item increases by x% then consumption(c) has to be decreased by 100 /(100+x) % to keep the expenditure(E) constant.

2. If two articles are sold at same price , and on first one the shopkeeper makes a profit of p% and on the other suffers a loss of p % , overall he suffers a loss. The loss is p*p /100 % ie., ( p square divided by 100).


Especially,I have seen the second type of question very common one in many competitive tests.


Note : Please let me know if you are interested in the reason behind each answer.

This is my first post in gmatclub.I thank all of the gmatclub members / moderators for providing such a wonderful environment.

PERCENTS

This post is a part of [GMAT MATH BOOK]

created by: Bunuel
edited by: bb, walker


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Definition

A percentage is a way of expressing a number as a fraction of 100 (per cent meaning "per hundred"). It is often denoted using the percent sign, "%", or the abbreviation "pct". Since a percent is an amount per 100, percents can be represented as fractions with a denominator of 100. For example, 25% means 25 per 100, 25/100 and 350% means 350 per 100, 350/100.

• A percent can be represented as a decimal. The following relationship characterizes how percents and decimals interact. Percent Form / 100 = Decimal Form

For example: What is 2% represented as a decimal?
Percent Form / 100 = Decimal Form: 2%/100=0.02

Percent change

General formula for percent increase or decrease, (percent change):


\(Percent=\frac{Change}{Original}*100\)

Example: A company received $2 million in royalties on the first $10 million in sales and then $8 million in royalties on the next $100 million in sales. By what percent did the ratio of royalties to sales decrease from the first $10 million in sales to the next $100 million in sales?

Solution: Percent decrease can be calculated by the formula above:
\(Percent=\frac{Change}{Original}*100=\)
\(=\frac{\frac{2}{10}-\frac{8}{100}}{\frac{2}{10}}*100=60%\), so the royalties decreased by 60%.


Simple Interest

Simple interest = principal * interest rate * time, where "principal" is the starting amount and "rate" is the interest rate at which the money grows per a given period of time (note: express the rate as a decimal in the formula). Time must be expressed in the same units used for time in the Rate.

Example: If $15,000 is invested at 10% simple annual interest, how much interest is earned after 9 months?
Solution: $15,000*0.1*9/12 = $1125


Compound Interest

\(Balance(final)=\)
\(=principal*(1+\frac{interest}{C})^{time*C}\), where C = the number of times compounded annually.

If C=1, meaning that interest is compounded once a year, then the formula will be: \(Balance(final)=\)
\(principal*(1+interest)^{time}\), where time is number of years.

Example: If $20,000 is invested at 12% annual interest, compounded quarterly, what is the balance after 2 year?
Solution: \(Balance=20,000*(1+\frac{0.12}{4})^{2*4}=\)
\(=20,000*(1.03)^8=25,335.4\)


Percentile

If someone's grade is in \(x_{th}\) percentile of the \(n\) grades, this means that \(x%\) of people out of \(n\) has the grades less than this person.

Example: Lena’s grade was in the 80th percentile out of 120 grades in her class. In another class of 200 students there were 24 grades higher than Lena’s. If nobody had Lena’s grade, then Lena was what percentile of the two classes combined?

Solution:
Being in 80th percentile out of 120 grades means Lena outscored \(120*0.8=96\) classmates.

In another class she would outscored \(200-24=176\) students.

So, in combined classes she outscored \(96+176=272\). As there are total of \(120+200=320\) students, so Lena is in \(\frac{272}{320}=0.85=85%\), or in 85th percentile.


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Hey guys i am new in this forum... can you help me with these percentage problem?

1) The income of a broker remains unchanged though the rate of commission is increased from 4% to 5%. THe percentage slump in business is:

i)1 ii) 8 iii) 20 iv)80

2) p is 6 times as large as q. The percent that q is less than p is:

i) 83.33 ii) 16.5 iii) 90 iv) 60

3) In a market survey 20% voted for A and 60% voted for B. the remaining were uncertain. if the difference between who voted for B and those who were uncertain was 720 how many individuals were covered in the survey?

i) 3600 ii) 1440 iii)1800 iv) cant determine

The point here is that Lena herself is not in the other class. So in another class she outscored 200-24=176 not 175.

Hope it's clear.

"Lena’s grade was in the 80th percentile out of 120 grades in HER class. In ANOTHER class ..." So another class is not Lena's class.

OK. Thanks.
I observed that, but I looked at those two statements "independently", because we are not allowed to make assumptions unless sufficient supporting material is available.