Chapter#1

Ratio:
The quantitative relation between two amounts of the same thing. It is a comparison of the
magnitude of two quantities of the same thing.

A ratio shows the number of times one value contains or is contained within the other
value (it is similar to a fraction).
The first number is called the numerator or antecedent and the second number is called
the denominator or consequent.

- Ratio of tables to chairs 30:60 (30 tables to 60 chairs)

30
- 60
- 3:6 is not same as 6:3 (Order matters)

Question#1
Are ratios 1 to 4 and 2:8 equal?

Proportion
Four quantities are said to be in proportion, if ratio of a to b is equal to ratio of c to d.

a:b :: c:d (First and last terms are called extremes and middle two terms are called means)
𝑎 𝑐
= QB# 1.5
𝑏 𝑑
PQ#5, 19, 34, 48
Question # 1
The age of Mr. A and Mr. B are in ratio of 26:19. If age of Mr. A is 20 years old,
how old Mr. B is?
Proportionate Sharing
A : B : C :: 10:20:30
𝟏𝟎 𝟐𝟎 𝟏𝟎
: : PQ#7, 18, 30
𝟔𝟎 𝟔𝟎 𝟔𝟎

Rate
A rate is ratio that compare two different kind of numbers, such as km per hour or Rupees per
Dollar.
Comparison of rates
Question#1
A person travelled 550 Km at the speed of 110 Km/hour. How much time taken to reach
the destination.
110 550
Solution: 1
= 𝑡
Percentage (%)
5
Means per hundred. (5% mean 100)
QB# 1.7, 1.8
PQ# 10, 11, 40, 43
Question#1
- Find the trade discount which is 15 % of sales price. If sale price is Rs. 900.
What is the amount of trade discount?
- If Rs. 50 is 10% of a particular amount. What is the amount of amount?
PQ#1

By: Mian M Zeeshan

 - Rs. 20,000 is the saving out of Rs. 200,000. What is the percentage of
saving?
Rate of increase or decrease (Percentage increase or decrease)
𝐼𝑛𝑐𝑟𝑒𝑎𝑠𝑒𝑑 𝑣𝑎𝑙𝑢𝑒−𝑂𝑙𝑑 𝑣𝑎𝑙𝑢𝑒
Percentage increase = 𝑂𝑙𝑑 𝑉𝑎𝑙𝑢𝑒
PQ#3, 12, 44

𝑂𝑙𝑑 𝑣𝑎𝑙𝑢𝑒−𝐷𝑒𝑐𝑟𝑒𝑎𝑠𝑒𝑑 𝑣𝑎𝑙𝑢𝑒

Percentage decrease = 𝑂𝑙𝑑 𝑉𝑎𝑙𝑢𝑒
PQ# 42
Question # 2
- The price of product increased from Rs. 100 to Rs. 120. Find rate of increase
in price?
- The speed of a plane reduced from 500km/hour to 450km/hour. Find rate of
decrease in speed?

Inflating figures
QB# 1.11, 41
Deflating Figures
PQ#16, 38, 41

Cost structures
mark-up
Gross profit is expressed as a percentage of cost of sales – this is known as mark-up; or
Cost 100 (1 base)
Profit 20 (0.2 is inflating percentage)
Sales price 120 (1.2 is inflating amount)

Margin
Gross profit is expressed as a percentage of sales – this is known as profit margin.
Cost 100 (0.8 is deflating amount)
Profit 20 (0.2 is deflating percentage)
Sales price 100 (1 is base)
PQ#37

By: Mian M Zeeshan