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­Let the pay be $1 . Tracy and Lee works for one hour.

Tracy's payment = $200
Lee's payment = $160

Difference = $(200−160) = $40

Required percentage = 40/160∗100= 25%(160 in denominator because we have to tell increase percentage with respet to lee)
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MasteringGMAT
Tracy and Lee are installing tile on the floor of a shopping center. Tracy installs 200 tiles per hour and Lee installs 160 tiles per hour. If their hourly pay is proportional to the rate at which they install tiles, Tracy's hourly pay is what percent greater than Lee's hourly pay?

A. 20%
B. 25%
C. 40%
D. 80%
E. 125%
­Since the hourly pay is proprortional to the rate (tiles per hour), the question simplifies to: "200 is what percent greater than 160?".

Our formula for % Change, in general, is \(\frac{New - Old }{ Old} * 100%\), or it's often easier to use this version of the formula: (\(\frac{New }{ Old} - 1)\) * 100%

When we have the wording "X is what percent greater than Y", Y represents the baseline, "Old", and X represents the "New".

(200/160 - 1) * 100% = (5/4 - 1) * 100% = 25%­
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