PERCENTAGES VAULT 100% CONCEPT CLARITY AB RULE SHORTCUT NO MATH ANXIETY PERCENTAGES VAULT
Arithmetic Foundation

What Are Percentages?

A Complete Foundation & Shortcut Guide for CAT, MBA CET, NMAT, SNAP & XAT

The Bodhi Vault / Quant Vault / Percentages
DEFINITION

One-Line Definition

A Percentage is a way of expressing a number as parts out of 100. It helps compare quantities regardless of their actual size.

Symbol: % (per hundred)
CORE INTUITION 🍕

Pizza Slices Mental Model

Imagine a pizza cut into 100 equal slices:

  • • Eat 25 slices → You've eaten 25%
  • • Eat 50 slices → You've eaten 50%
  • • Eat all 100 slices → You've eaten 100%
A percentage simply tells us how many parts out of every hundred. That's all.
💡 WHY THIS CONCEPT MATTERS IN MBA EXAMS

Percentages are one of the most important topics in aptitude exams because they appear directly and indirectly across almost every arithmetic topic:

Ratio & Proportion
Profit, Loss & Discount
Simple & Compound Interest
Data Interpretation (DI)
Partnerships
Mixtures & Alligation
Averages & Growth
Stock Market & Inflation
📐 THE PERCENTAGE FORMULA & MULTIPLIERS
Percentage = (Part / Whole) × 100

Example:

Out of 40 students in a classroom, 30 students passed the examination.
Percentage Passed = (30 / 40) × 100 = 75%.

Thinking in Multipliers (Shortcut)

Increase by 20% × 1.20
Decrease by 20% × 0.80
Increase by 50% × 1.50
⚡ FRACTION TO PERCENTAGE TABLE (1/2 TO 1/20)

Memorize these core fractional equivalents to eliminate long division during CAT & MBA CET exam drills.

1/250%(0.50)
1/333.33%(0.333)
1/425%(0.25)
1/520%(0.20)
1/616.67%(0.166)
1/714.28%(0.1428)
1/812.5%(0.125)
1/911.11%(0.111)
1/1010%(0.10)
1/119.09%(0.0909)
1/128.33%(0.0833)
1/166.25%(0.0625)

SHORTCUT RULES & KEY FORMULAS

CONSTANT PRODUCT RULE

AB Rule

If A × B = K (Constant), and A increases by x/y, then B decreases by x/(x + y).

Used when the product of two variables remains constant (Price × Consumption = Expenditure, Speed × Time = Distance).

Mental Shortcut: If Price increases by 25% (1/4), Consumption must decrease by 1/(1+4) = 1/5 = 20% to keep expenditure constant.
SUCCESSIVE CHANGE

Successive Percentage Formula

Net Change % = a + b + (a × b) / 100

Calculates net percentage change when two successive percentage changes a% and b% are applied sequentially.

Mental Shortcut: For a 20% increase followed by a 10% increase: Net = 20 + 10 + (20*10)/100 = 32% (NOT 30%).

SOLVED EXAMPLES (LEVEL 0 TO HARD)

Example 1 (Easy)

Q: Find 20% of 250.

Solution: Convert 20% into its fractional equivalent 1/5.

20% of 250 = 250 ÷ 5 = 50.

Answer = 50
Example 2 (Medium)

Q: A shirt costs ₹800. Its price increases by 15%. Find the new price.

Step 1: Increase amount = 15% of 800 = (15 / 100) × 800 = ₹120.

Step 2: New Price = Original Price + Increase = 800 + 120 = ₹920.

(Alternative Multiplier Method: New Price = 800 × 1.15 = ₹920)

Answer = ₹920
Example 3 (Hard / Exam Classic)

Q: A quantity increases by 20% and then decreases by 20%. Is the final value equal to the original?

Step 1: Assume Original Value = 100.

Step 2: After 20% increase: 100 → 120.

Step 3: After 20% decrease on 120: 20% of 120 = 24. Final = 120 - 24 = 96.

Step 4: Net Change = 96 - 100 = -4% overall decrease.

Answer = Decreases by 4% overall (NOT 0%)
⚠️ COMMON MISTAKES TO AVOID IN CAT & CET

Mistake 1

Adding Percentage Changes Directly

+20% followed by -20% does NOT equal 0%. It results in an overall 4% decrease. Always apply successive percentage formulas or multipliers.

Mistake 2

Using the Wrong Base Quantity

20% of 50 = 10, whereas 50% of 20 = 10 (numerical equality, but base context differs in word problems). Always identify the reference base.

Mistake 3

Incorrect Decimal Conversions

25% = 0.25 (NOT 25). 0.5% = 0.005. Be extra cautious with decimals smaller than 1%.

📝 PRACTICE QUESTIONS
Basic

1. Find 30% of 150.

Answer: (30/100) × 150 = 45.

Moderate

2. A salary increases from ₹40,000 to ₹46,000. Find the percentage increase.

Answer: (6,000 / 40,000) × 100 = 15% increase.

Advanced

3. A product price is first increased by 25% and then discounted by 20%. Find the overall percentage change.

Answer: Net = +25 - 20 + (25 × -20)/100 = 5 - 5 = 0% overall change (Price remains same).

FREQUENTLY ASKED QUESTIONS

❓ Why are fraction to percentage tables important for CAT & CET?

Memorizing fractions from 1/2 to 1/20 turns time-consuming division into instant mental arithmetic. For example, knowing 1/7 = 14.28% and 1/8 = 12.5% saves 30-45 seconds per question.

❓ How does the AB Rule work for Price-Consumption questions?

When Expenditure = Price × Consumption is constant, a fraction increase in Price of x/y causes a fraction decrease in Consumption of x/(x+y).

❓ Can a percentage be greater than 100%?

Yes! For example, if sales double, the increase is 100%. If sales become 3 times the original amount, the increase is 200% (and total is 300% of original).