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SSC & BANK EXAMS: QUANTITATIVE APTITUDE · PERCENTAGES

Successive percentage change

Two changes of a% and b% give a net change of a + b + ab/100 (use minus signs for decreases).

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Worked examples

Example 1 · level 1

The rent of a flat in Indore is first increased by 25%, then decreased by 20%. What is the net percentage change?

  1. No change
  2. 2% increase
  3. 1.5% increase
  4. 5% increase
Show solution
  1. Combine 25% and −20%: 25 + (−20) + (25 × −20)/100 = 0%.
  2. Net change = No change.

Answer: No change

Example 2 · level 2

The price of 1 kg of tea is first increased by 30%, then increased by 10%. What is the net percentage change?

  1. 40% increase
  2. 45% increase
  3. 43% increase
  4. 43% decrease
Show solution
  1. Combine 30% and 10%: 30 + (10) + (30 × 10)/100 = 43%.
  2. Net change = 43% increase.

Answer: 43% increase

Example 3 · level 3

The rent of a flat in Ranchi is first decreased by 20%, then increased by 5%, then increased by 30%. What is the net percentage change?

  1. 15% increase
  2. 9.2% increase
  3. 11.2% increase
  4. 9.2% decrease
Show solution
  1. Combine −20% and 5%: −20 + (5) + (−20 × 5)/100 = −16%.
  2. Combine −16% and 30%: −16 + (30) + (−16 × 30)/100 = 9.2%.
  3. Net change = 9.2% increase.

Answer: 9.2% increase

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