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Arithmetic - Formulae & Shortcuts


Percentages
1. p % of a number (N) = p * N
100
2. To remove %, divide by 100
3. To convert into %, multiply by 100
4. Relation b/w %ages & Fractions
Fraction
Percentage
Fraction
1
1/9
100
1/2
1/10
50
1/3
1/11
33.33
1/4
1/12
25
1/5
1/13
20
1/6
1/14
16.67
1/7
1/15
14.28
1/8
1/16
12.5

5. Percentage Change = (F I) 100


I
(F Final Value
I Initial Value)
+ve if Final value > Initial Value
-ve if Final value < Initial value

Percentage
11.11
10
9.09
8.33
7.69
7.14
6.67
6.25

a) In general, Multiplying Factor = (1 R/100)


b) Final Value = (1 R/100) Initial value
c) MF = Final Value = (1 R/100)
Initial value
d) Tells us how many times is the Final Value in comparison
to the initial value
e) MF > 1 if Final value > Initial
MF < 1 if Final value < Initial
Eg: A is 40% of B A = 40/100 B A = 0.4 B
A is 40% more than B A = B + 40/100 B
A = 1.4 B
7. Base Change
a) If A is r% more than B,
then B is 100r % less than A
100 + r
b) If A is r% less than B,
then B is 100r % more than A
100 r

6. Multiplying Factor

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c) If the price of a commodity increases/decreases by r%,
consumption decreases/increases by 100r / (100 r) %,
given the expenditure remains same (Also known as the
product stability ratio)
% Change in A
100 %
50 %
33.33%
25 %
20 %

% Change in B
50 %
33.33 %
25 %
20 %
16.66 %

% Change in A
16.66 %
14.28 %
12.5 %
11.11 %
10 %

% Change in B
14.28 %
12.5 %
11.11 %
10 %
9.09 %

8. Successive Percentage Change


a) Effective change of two successive changes of a% & b%
is (a + b + ab/100)%
b) In general, for more than two successive changes of a%,
b%, c%...
Final Value = Initial Value (1 a/100)(1 b/100)(1
c/100)

SIMPLE INTEREST & COMPOUND INTEREST


1. Simple Interest = P R T
100
(If P & R constant, SI remains same for every year)
(SI)1=(SI)2=(SI)3=(SI)4=(SI)5=======(SI)n

3. Amount = P (1 + R/100)T
Compound Interest = A P = P (1 + R/100)T P
(CI)1< (CI)2< (CI)3< (CI)4 < (CI)5 <<<<<< (CI)n

SI = PR1/100 + PR2/100 + PR3/100 +


(in case R varies each year)
Amount = P + SI
2. Repayment in Equal Installments @ SI
e.g. What annual installment will discharge a loan of Rs. 3540,
due after 5 years, the rate of interest is 9% per annum @ SI?
x + 1.09x + 1.18x + 1.27x + 1.36x = 3540 x = 600

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CI = P (1 + R1/100)(1 + R2/100)(1 + R3/100) P


(in case R varies each year)
4. a) CI2 SI2 = PR2/1002

(for 2 years or 2nd year)

b) CI3 SI3 = P (R3/1003 + 3R2/ 1002) (for 3 years)


c) CI3 SI3 = P (R3/1003 + 3R2/ 1002) PR2/1002

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5. a) If Amount gets X times in T years @ SI,


it gets Y times in (Y 1) T years
(X 1)

A = P 1 + R/n
100

Tn

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CI = A P

7. a) SAGR = (A P) / P 100
T

b) If Amount gets X times in T years @ CI,


it gets Y times T n years
where, Xn = Y

b) CAGR = [(A/P) 1/T 1] 100


6. Non Annual Compounding
SI = P R T
100 n

c) If A & P constant for both SAGR & CAGR


then CAGR < SAGR
(T > 1year)

A = P + SI

where, n = 2 (half-yearly)
= 4 (quarterly)
= 12 (monthly)
= ((PR3/1003) + (2PR2/ 1002)) (for
3rd(weekly)
year)
= 52
= 365 or 366 (daily)

8. Comparing SI & CI
Year
1st
2nd
3rd

nth

Principal
P
P
P

Simple Interest
Interest
PR/100 = I
PR/100
PR/100

PR/100

Compound Interest
Principal
Interest
P
PR/100 = I
P+I
I (1 + R/100)
P + I + I (1 + R/100) I (1 + R/100)2

P + I + I (1 + R/100) I (1 + R/100)n-1
+ + I (1 + R/100)n1

Total

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PR/100 n

I + I (1 + R/100) ++ I (1 + R/100)n-1

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PROFIT, LOSS & DISCOUNT


1. a) Cost Price + Mark Up = Marked Price
b) Marked Price Discount = Selling Price
2. a) Profit / Loss = SP CP
= Mark Up Discount
b) Mark Up = MP CP
c) Discount = SP MP
3. a) P/L% = (SP CP) / CP 100
SP = (1 P/L%/ 100) CP

CASE I

CASE II

CP1 = Value = CP2

CP1 + CP2 = Value

r%

r%

r%

SP1 + SP2 = 2 Value


Overall, No Profit No Loss

r%

SP1 = SP2
2

Overall, Loss = r

/100

%
b) MU% = (MP CP) / CP 100
MP = (1 + MU%/ 100) CP
c) Disc% = (SP MP) / MP 100
SP = (1 Disc%/ 100) MP
4. Relation b/w P/L%, MU% & Disc%
(1 P/L%/ 100) = (1 + MU%/ 100) (1 Disc%/ 100)
MP
(They have a successive percentage change relation)
P/L% = MU% Disc% MU% Disc% / 100
MFP/L = MFMU MFDisc

5. PROFIT / LOSS MARGIN = (SP CP) / SP 100


(expressed in %)
Profit Margin < P % age
Loss Margin > Loss % age
Base change formulae to be used to convert one into another
100r %
100 + r
6. Faulty Balance
Percentage Error = (False Value Actual Value) / Actual
Value 100

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