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Percents PDF
Percents PDF
Percents PDF
Fundamentally, a percent is a fraction out of 100 – it is per centum (Latin for “per 100”). It’s easy to change a
percent to a decimal. For example, 37% means 37 parts out of one hundred, or 37/100. As a decimal, that’s just
0.37. Changing a percent to a decimal simply involves sliding the decimal to the left two places.
a) X% of a number
Suppose I have $400 in an account, and need to know what 30% of this account is. The multiplier = the percent as
a decimal. 30% as a decimal is 0.30, and $400(0.30) = $120, so $120 is 30% of $400.
b) an X% increase
Suppose I have $400 in an account, over time period, I am going to get an additional 5% of interest; in other word,
my account is going to increase by 5%. Here, the multiplier = 1 + (the percent as a decimal). Thus, $400
(1.05) = $420, so that’s the amount I would have after a 5% increase
c) an X% decrease
Suppose I have $400 in an account, and because of some kind of penalty, I am going to be nailed with a 15%
deduction; in other words, my account will decrease by 15%. Here, the multiplier = 1 – (the percent as a
decimal). In this case, the multiplier = 1 – 0.15 = 0.85, and the result after the deduction is ($400)(0.85) = $340.
Basically, a percent is a simple ratio times 100. The GMAT will ask you to calculate percent changes, and
here you have to be very careful with order, i.e., what’s the starting number and what’s the ending number.
IMPORTANT: in a percent change, the starting number is always 100%. Thus, we can say:
Of course, that’s a change of $100, so $100 divided by starting value of $400 is 0.25, times 100 is 25%. A move
from $400 to $500 is a 25% increase.
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b) Price decreases from $500 to $400; find the percentage decrease.
Change is still $100, but now the starting value is $500, and $100/$500 = 0.20, times 100 is 20%. A move from
$500 to $400 is a 20% decrease.
BIG IDEA: Order matters. When you change from one value to another and want the percentage change, it matters
which value was the starting value.
Aggregate change = (1.40)(0.70)(1.20) = 1.176 –> that’s a 17.6% increase for the quarter.
BIG IDEA: For a series of percentage changes, simply multiply the respective multipliers.
Thus, after the increase and decrease, the final price is 96% of the original price, which means it is a 4% decrease.
BIG IDEA #1: when you go up by a percent, then down by the same percent, you do not wind up where you
started: that’s the trap.
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BIG IDEA #2: in this situation, as in any situation in which you have a series of percentage changes, simply multiply
the respective multipliers.
If you simply remain clear on these five tips, you will be a master of percent & percentage change, one of the most
frequently asked topics on GMAT Math.