Relative Percentage

Every banking exams like IBPS PO, IBPS clerk, SSC and MBA exams as well such as CAT have 3-4 questions appearing from percentage section alone. So, it is important that you study percentage chapter well. And therefore it is not possible to cover the entire chapter in one section. And that is why we are discussing one topic at a time. Today we will be discussing on relative percentage.

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Relative Percentage                                                                                                                                      

In relative percentage, usually, questions are asked in form of comparison. You are required to find out the comparison between two people or objects or products. This will be understood better by using some of the solved examples. But before going into some questions, we will provide you with some of the basic formulas required to solve percentages. There are many different types of percentage questions that can be asked in the exam like percentage change, successive percentage, relative percentage, etc.

Basic Rules of Percentage

  •  p % of y = (p/100) x y = y % of p.
  • To find what percent of a is b: b/a x 100.
  • Increase in A by B % = A( 1 + B/100)
  • The decrease in A by B % = A(1 – B/100)
  • When the price of the item increases by n % than the reduction of quantity should be 100n/ (100 + n) % so that the total expenditure of the item remains the same.
  • For successive percentage change, if the price of the quantity increases by x % and y %, then the percentage increases will be {x + y + (xy/100)}.
  • When the price of an item increases by x % than the increase in the consumption so that the expenditure does not increase is {(x/100 + x) x 100 %}.
  • While the formula for the price of an item decreases by x %, when there is a decrease in the consumption so that the expenditure does not decrease is {(x/100-x) x 100%}.

Examples Based on Salary

Q. A’s salary is 25 % more than B’s salary. By what percentage is the B’s salary less than A’s salary?

A. 30 %
B. 20 %
C. 15 %
D. 25 %

We will keep B’s salary as a base and solve the question. So, let’s suppose that B’s salary is 100. A’s salary is 25 % more than B, so now A’s salary will be 125. This shows that B’s salary is 25 less than A. But 25 is 1/5th part of 125, so it is 20 % less than A. So, the required answer is 20 % which is option B. This can be solved quickly if you remember the product constancy table.

Examples Based on Goods

Q. Suresh sells his goods 25 % cheaper than Mahesh and 25 % dearer than Ramesh. How much percentage is goods of Ramesh cheaper than Mahesh?

A. 33.33 %
B. 66.66 %
C. 40 %
D. 50 %

To easily solve this type of questions, assume the price of goods of one of the people as 100. Here, let’s assume that goods of Suresh are 100. So the goods of Mahesh will be 133.33 and Ramesh will be 80. So, the goods of Ramesh in comparison to will be (53.33/133.33) x 100 cheaps. This gives us the answer as 40 %. So, the correct answer is C.

Q. If the price of the sugar is decreased by 10 % and the sales are increased by 15 %, then what is the net effect of the revenue?

A. +5 %         B. + 3.5 %         C. -3.5 %          D. +7.5 %

Here, suppose that earlier the price of the sugar was Rs. 100 and the sales were also 100. Now, with the decrease in price, the new price of the sugar will be Rs. 90 and with the increase in sales the new sales of the sugar will be 115. So, old revenue of the sugar was 100 x 100 = Rs. 10000. Now, due to increase and decrease in sales and prices of the sugar respectively the new revenue will be, 115 x 90 = Rs. 10350. So, there is an increase of Rs. 350 in the new revenue of the sugar. 350 is 3.5 % of the original revenue. Thus the correct answer is B.

Practice Questions

Q. A person recently got a promotion and his salary was increased by 23 %. But due to ongoing cost-cutting in the company, his salary was reduced by 32 %. Find the net change in the person’s salary.

A. -14.32 %
B. – 15. 60 %
C. -16.36 %
D. – 17.34 %

Ans: The correct answer is C.

Q. In 2004, the watch manufacturers had two watches manufactured – Sitan and Holex with market shares of 25% and 75% respectively. In 2005, the overall market for the product was increased and there was a new member of the market. This new member captured 15% of the market share. We know that the market share of Sitan was increased up to 50% in the following year, the share of Holex in the same year was…….

A. 50 %
B. 45 %
C. 40 %
D. 35 %

Ans: The correct answer is D.

Q. There were two friends appearing for the examination. One of those friends scored 6 marks more than the other and her marks were 52 % of the sum of the total marks. How many marks did better on the two friends scored?

A. 72
B. 78
C. 76
D. 82

Ans: The correct answer is B.

Q. The Indian MNC has 2000 employees. The females outnumber male by 150 %. In all, there are a total of 60 managers. Among the total female members, 2 % are managers. What % of male employees are managers?

A. 4 %         B. 4.5 %           C. 5 %         D. 9 %

Ans: The correct answer is B.

Q. Suresh had Rs. 96000 in his bank account two years ago. After one year he added 25 % to that amount in the bank. In the second year, he added deposited 12.5 % of the increased amount in his bank account. What is the final he has in the bank account after two years?

A. Rs. 135000         B. Rs. 108000       C. Rs. 132000         D. Rs. 120000

Ans: The correct answer is A.

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One response to “Percentage Change”

  1. kiran says:

    Total wrong teaching and examples are wrong change the mistakes of every example, I found this
    change in percentage = 4/40 x 100 = 20%.

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