Percentage

The term percent means “for every 100”. It is derived from French word “Cent”
which is 100 for French.

The basic of utility of percentage arises from the fact that it is one of the most
powerful tool for comparison of numeric data and information. It is also one of
the simplest tool for comparison of data.

In the context of business and economic performance, it is specifically, useful

for comparing data such as profits, growth rates and magnitude and so on.

Calculation

Since the percentage represent the value obtained out of every 100,
calculation can be done in following manner.

Percentage = value (obtained / total value) x 100

For example, let in competitive examination Mohan scored 135 marks out of
300 marks. Then marks obtained by Mohan in % term is equal to 135/100 %

=45%

Some useful shortcut methods.

1(a) If A is x% more than that of B then B is less than that of A by

{(x / 100 + x) * 100}%

1(b) If A is x% less than that of B then B is more than that of A by

{(x/100-x) * 100}%
Example 1: If Shailendra’s salary is 20% more than that of Surendra, then how
much percent is salary of Surendra less than that of Shailendra?

Sol: Here x=20

Required answer = { (x / x+100) * 100 }%

= (20 / 120) x 100 %

= 100/6 %

= 16.66 %

Example 2: If A’s income is 30% less than that of B’s income, then how much
percent is B’s income more than that of A’s income?

Sol: Here x=30

Required answer = { (x/ x-100) * 100 }%

= (30/70) * 100 %

= 42.8%

2. If A is x% of C and B is y% of C then

A={(x/y) * 100 }% of B

Example 3: If A is 20% of C and B is is 25% of C, then what percentage is A of B?

Sol: Here x= 20 , y= 25

A= (x/y) * 100 = 20/25 x 100 = 80% of B.

3(a). If the price of a commodity increased by P%, then the reduction in

consumption so as not to increase the expenditure is

{(P / 100 + P )x 100}%

3(b). If the price of a commodity decrease by P% then the increase in

consumption so as not to decrease the expenditure is

{(P/100-P) x 100}%

Example 4: If the price of sugar increases by 25%. Find how much percent its
consumption be reduced so as not to increase the expenditure?

Sol : Reduction in consumption

= {(P/100+P) x 100}%

= (25/125) x 100 % = 20 %

Example 5: If price of commodity decrease by 25% , find how much percent its
consumption be increased so as not to decrease the expenditure?

Sol: Increase in consumption

= (P/ 100 – P) x 100 %

=25/75 x 100 %

= 100 /3 = 33.33 %
4. If a number is changed (increased / decreased) successfully by x % and y %
then net % change is given by ( x + y + (xy/100)) %, which represent increase
or decrease in value according as the sign in + ve or -ve .

If x or y indicates decrease in percentage then put – ve sign before x or y,

otherwise + sign.

Example 6: If salary of a person is increased by 10 % and 20 % successfully

then, what is the change in his salary?

Sol: Here x = 10 y =20

Therefore, the net % change in the salary

=(10+20+(10 x 20/100))%

=32 %

Example 7: If price of a commodity first increased by 20% then decreased by

10% then what is the net change in price of commodity.

Sol: Here x =20, y=-10 then net percentage change in price is

{20 – 10 + (20 x -10/100)}

=8%

Here sign is + ve , hence the net is +ve increase in price.

Example 8: If price of a commodity decreased first by 20% and then by 30%

then find the net change in price?

Sol: Here x=-20, y=-30

Net % change is

=(-20 – 30 + (-20 x -30) / 100)% = -44%

Here sign is negative the net change is reduction in price.

5. If the present population of a town (or value of an item) be p and the

population ( or value of item) changes in r% per annum, then

a) population ( or value of an item) after n years

= p( 1+r/100)n

b) population ( or value of an item) n years ago = p/(1+r/100)n

Where r is positive or negative according as the population (or value of item)

increase or decrease.

Example 9: The population of a town increases 10% annually. If its present

population is 120000, what will be in 2 years time?

Sol: Here P=120000, r=10 , n=2

Population after 2 years

=P(1+r/100)n = 120000(1+10/100)n

=120000 x 110/100 x 110/100 = 145200

Example 10 : The population of a town increase at the rate of 20% annually

due to excessive migration. If present population is 144000. Find the
population two years ago.

Sol: Here p= 144000 r=20

Population of the town two years ago

= p/ (1+ r/100)n
=144000/ (1+ 20/100)2 = 144000/ (120/100) x (120 / 100) = 100000

6. If a number A is increased by x%, y% and z% Successively then final value

of A will be A( 1+x/100) ( 1+y/100) ( 1+z/100).

In case if a given value decreases by an percentage. We will use negative sign

before that.

Example 11: The income of Ramesh increases by 10%, 20% and 30%
successfully in three years. Find change in his income if present income is
150000 Rs. Per annum.

Sol: Here x=10 , y=20, z=30, A=150000

So, percentage change in income= A( 1+x/100) ( 1+y/100) ( 1+z/100)

=150000 x (1+10/100) ( 1+ 20/100) (1+30/100)

=150000 x 110/100 x 120/100 x 130/100 = Rs 257400