
The Minister of State for Petroleum & Natural Gas and Textiles, Smt. Panabaka Lakshmi addressing at the launch of a novel scheme of sale of 5 kg LPG cylinders at market price with minimal documentatio
Credit: Ministry of Petroleum and Natural Gas · GODL-India · source

The Reserve Bank of India (RBI) is the central bank of India whose primary function is to manage and govern the financial system of the country. It is a statutory body established in the year 1935 und
Credit: Anurag Vijay 03 · CC BY-SA 4.0 · source
1. Meaning, base and useful conversions
A percentage is a ratio with denominator 100. Thus, 24% means 24/100, or 0.24. Although a percentage has no unit, the quantity calculated from it retains the original unit: 24% of ₹500 is ₹120, while 24% of 500 kilometres is 120 kilometres. Before calculating, identify the part, the whole and the relationship being asked.
The three basic forms are: part = percentage × whole/100; percentage = part/whole × 100; and whole = part × 100/percentage. If 72 candidates constitute 30% of a group, the group contains 72 × 100/30 = 240 candidates. Reverse questions are common traps because candidates sometimes apply the stated percentage to the part rather than recovering the whole.
Frequently used conversions make mental calculation faster: 1/2 = 50%, 1/3 = 33⅓%, 1/4 = 25%, 1/5 = 20%, 1/6 = 16⅔%, 1/8 = 12.5%, 1/10 = 10%, 1/12 = 8⅓%, 1/16 = 6.25% and 3/8 = 37.5%. Learn these as exact relationships, not merely rounded decimals.
- Use symmetry when helpful: a% of b = b% of a. Therefore, 16% of 25 = 25% of 16 = 4.
- Break awkward percentages into familiar parts: 17.5% of 640 = 10% + 5% + 2.5% of 640 = 64 + 32 + 16 = 112.
- For percentage-only comparisons, assume a convenient base such as 100 or a suitable multiple; do not do this when an actual value is fixed by the question.
2. Percentage change and reverse comparisons
Percentage change always uses the original value as the denominator. If attendance increases from 240 to 300, the increase is 60/240 × 100 = 25%. If it subsequently falls from 300 to 240, the decrease is 60/300 × 100 = 20%. The absolute difference is identical, but the comparison bases are not.
If A is p% more than B, then A = B(100 + p)/100. Consequently, B is 100p/(100 + p)% less than A. If A is p% less than B, then B is 100p/(100 − p)% more than A, provided p is less than 100. Thus, a value 25% above another corresponds to the second being 20% below the first.
Reverse calculations require division by the multiplier. A price that becomes ₹920 after a 15% increase was originally 920/1.15 = ₹800. A price that becomes ₹720 after a 10% reduction was originally 720/0.90 = ₹800. Subtracting 15% from ₹920 would not undo the original increase.
Distinguish percentage change from percentage-point change. If a success rate rises from 40% to 50%, it increases by 10 percentage points, but the relative increase is 10/40 × 100 = 25%. Likewise, a rise from 6% to 6.5% is 0.5 percentage point, or 50 basis points; one basis point equals 0.01 percentage point.
- Translate wording carefully: ‘increased by 120%’ means the final value is 220% of the original; ‘increased to 120%’ means a 20% rise.
- For a positive starting value, a decrease exceeding 100% is generally inconsistent with ordinary non-negative quantities such as population or stock.
Percentage problem-solving sequence
- 1. Identify the unknown and the reference base.
- 2. Separate absolute quantities, percentages and percentage points.
- 3. Convert percentages into fractions or multipliers.
- 4. Apply changes in the stated relationship.
- 5. Reverse using division or combine using appropriate weights.
- 6. Check magnitude, units and answer options.
3. Successive changes and multiplicative relationships
Successive percentage changes multiply; they are not ordinarily added. For changes a% and b%, use signed values, with decreases negative. The net change is a + b + ab/100 percent. An increase of 20% followed by a decrease of 10% gives 20 − 10 − 2 = 8% growth. Equivalently, 1.20 × 0.90 = 1.08.
An increase and decrease of the same p% produce a net decrease of p²/100 percent. For example, a 20% rise followed by a 20% fall leaves 96% of the original value. To recover from a fall of p%, the required increase is 100p/(100 − p)%. A 20% loss therefore requires a 25% gain for full recovery.
For repeated growth at r% per period over n periods, final value = initial value × (1 + r/100)^n. For repeated decline, use (1 − r/100)^n. This is the structure behind compound interest, depreciation and constant-rate population projections. Use each period’s actual rate if rates vary; an arithmetic average generally does not reproduce compound growth.
The same multiplier method applies to products. Since expenditure = price × quantity, a 25% price rise requires quantity to fall to 1/1.25 = 80% of its earlier level to keep expenditure unchanged. The required reduction is 20%. Similarly, if a rectangle’s length increases by 10% and breadth by 20%, its area increases by 1.10 × 1.20 − 1 = 32%.
- Two successive discounts of 20% and 10% give an effective discount of 28%, not 30%.
- Pure percentage multipliers can be rearranged without changing their product; this shortcut does not automatically apply when fixed additions, charges or rounding intervene.
| Situation | Correct result | Reason |
|---|---|---|
| 100 rises by 20%, then falls by 20% | 96; net fall of 4% | The fall is calculated on 120. |
| Rate rises from 20% to 25% | 5 percentage points; 25% relative rise | Relative change uses 20 as the base. |
| Price rises by 50%; expenditure unchanged | Consumption falls by 33⅓% | Required quantity multiplier is 1/1.5. |
| 30% discount gives a price of ₹700 | Original price is ₹1,000 | ₹700 represents 70% of the original. |
| Equal-sized groups have rates of 40% and 60% | Combined rate is 50% | Equal weights permit a simple average. |
4. Combined groups, changing denominators and examination problems
The overall percentage for multiple groups is a weighted average, with group sizes as weights. If 60% of 100 candidates and 80% of 300 candidates qualify, total qualifiers are 60 + 240 = 300 out of 400. The combined qualification rate is 75%, not the simple average of 70%. A simple average is valid when the relevant group sizes are equal.
Nested percentages require multiplication. If 40% of a school’s students are girls and 25% of those girls use the library daily, these users constitute 0.40 × 0.25 = 10% of all students. Always ask whether the second percentage refers to the entire population or only to a subgroup.
Election and examination questions often change denominators midway. Suppose 80% of 1,000 registered voters vote and 10% of votes cast are invalid. Valid votes number 1,000 × 0.80 × 0.90 = 720. A candidate receiving 60% of valid votes gets 432 votes, equivalent to 43.2% of registered voters.
Read marks-based conditions equally carefully. If a candidate scores 144 and falls short of the pass requirement by 16 marks, the pass mark is 160. If passing requires 40% of maximum marks, the maximum is 160/0.40 = 400. The shortfall is an absolute number, not a percentage.
- Do not add overlapping categories unless their common membership is accounted for.
- A constant subgroup count can acquire a larger percentage share when the total shrinks; a rising share does not necessarily mean a rising count.
5. A reliable CSAT solving strategy
Begin by naming the base and converting verbal statements into equations or multipliers. Keep fractions exact until the final step, particularly for values such as 16⅔% and 33⅓%. Estimate the likely range before calculating: after a 20% discount, the original price must exceed the selling price, and reversing that discount requires division by 0.8.
Use options as a checking tool. In a reverse-percentage problem, substitute a plausible option and apply the stated change. For successive changes, start with 100 when only the net percentage is required. In data interpretation, examine headings, units and whether percentages describe totals, subgroups or changes over time before using the figures.
Practise accuracy before speed. Maintain an error log organised by wrong base, additive treatment of successive changes, incorrect averaging and percentage-point confusion. These recurring conceptual mistakes matter more than memorising many specialised shortcuts.
- Final check: denominator correct, units consistent, direction sensible and answer compatible with the options.
Real-world case studies
GST-inclusive prices in India
India introduced GST on 1 July 2017. For an illustrative item taxed at 18%, an inclusive price of ₹1,180 consists of ₹1,000 taxable value and ₹180 tax. Recovering the tax requires 1,180 × 18/118, not 18% of ₹1,180. The tax rate is applied to the taxable value, not to the tax-inclusive total.
RBI rate changes and basis points
On 8 February 2023, the RBI announced a 25-basis-point increase in the policy repo rate, from 6.25% to 6.50%. This was a rise of 0.25 percentage point. Relative to the earlier rate, the increase was 0.25/6.25 × 100 = 4%, illustrating why basis points and percentage changes must not be confused.
Previous year questions
No source-linked PYQ is available here yet. Use the practice questions below.
Practice questions
Practice MCQ 1 · Easy
A village council allocates 17.5% of its annual development budget of ₹8,00,000 to drinking-water facilities. What amount is allocated to drinking-water facilities?
- A. ₹1,20,000
- B. ₹1,40,000
- C. ₹1,60,000
- D. ₹1,75,000
Practice MCQ 2 · Easy
In a training programme, 90 participants constitute 37.5% of all participants. What is the total number of participants?
- A. 180
- B. 225
- C. 250
- D. 240
Practice MCQ 3 · Easy
The price of a notebook at Shop P is 25% less than its price at Shop Q. By what percentage is the price at Shop Q higher than that at Shop P?
- A. 33⅓%
- B. 25%
- C. 20%
- D. 37½%
Practice MCQ 4 · Easy
The number of visitors to a museum increased by 20% in one year and decreased by 10% in the next year. What was the net percentage change over the two years?
- A. 10% increase
- B. 2% decrease
- C. 8% increase
- D. 12% increase
Practice MCQ 5 · Easy
The price of a commodity rises by 25%. A household decides to increase its expenditure on that commodity by only 10%. By what percentage must it reduce the quantity purchased?
- A. 15%
- B. 12%
- C. 10%
- D. 20%
Practice MCQ 6 · Moderate
In a recruitment test, 60% of the candidates from Centre P and 80% of the candidates from Centre Q qualified. If 72% of all candidates from the two centres together qualified, what was the ratio of the number of candidates from Centre P to that from Centre Q?
- A. 2 : 3
- B. 3 : 2
- C. 3 : 4
- D. 1 : 2
Practice MCQ 7 · Moderate
A person's income increases by 20%, expenditure increases by 10%, and savings increase by 50%. Savings are defined as income minus expenditure. What percentage of the original income was originally spent?
- A. 60%
- B. 66⅔%
- C. 80%
- D. 75%
Practice MCQ 8 · Moderate
In an election with only two candidates, 80% of the registered voters cast their votes. Of the votes cast, 10% were invalid. The winner received 55% of the valid votes and won by 1,440 votes. How many voters were registered?
- A. 18,000
- B. 24,000
- C. 20,000
- D. 16,000
Practice MCQ 9 · Moderate
A shopkeeper offers successive discounts of 20% and 10% on the marked price of an article and still earns a profit of 20% on its cost price. By what percentage is the marked price above the cost price?
- A. 50%
- B. 66⅔%
- C. 60%
- D. 72%
Practice MCQ 10 · Moderate
All candidates in an examination appeared in both Paper I and Paper II. Of them, 70% passed Paper I, 65% passed Paper II, and 15% failed both papers. What percentage of the candidates passed exactly one paper?
- A. 35%
- B. 50%
- C. 30%
- D. 45%
Practice MCQ 11 · Difficult
In an organisation, 25% of the women and 10% of the men resign. These resignations reduce the total workforce by 16%. The organisation then recruits new employees equal in number to 25% of the workforce remaining after the resignations. If women constitute 40% of the final workforce, what percentage of the newly recruited employees are women?
- A. 57 1/7%
- B. 40%
- C. 50%
- D. 60%
Practice MCQ 12 · Difficult
A trader purchases a batch of identical articles at the same cost per article. Before any sale, 10% of the articles are damaged and discarded without recovery. One-third of the remaining articles are sold at a discount of 10% on the marked price, while the rest are sold at successive discounts of 20% and 25% on the same marked price. Additional expenses equal 5% of the purchase cost of the entire batch. If the trader earns a profit of 20% on the total of purchase cost and additional expenses, by what percentage was each article marked above its purchase cost?
- A. 80%
- B. 90%
- C. 110%
- D. 100%
Practice MCQ 13 · Difficult
In an election with only two candidates, every registered voter is classified as either male or female. Of the registered male voters, 80% vote; of the registered female voters, 60% vote. The overall turnout is 72%. Of the votes cast by men, 5% are invalid, while 10% of the votes cast by women are invalid. Candidate P receives 50% of the valid votes cast by men and two-thirds of the valid votes cast by women. If P wins by 2,160 votes, how many registered female voters are there?
- A. 9,000
- B. 10,000
- C. 12,000
- D. 15,000
Practice MCQ 14 · Difficult
A factory produces only components of types A and B. In the first month, 10% of type A components and 20% of type B components are defective; the combined defective percentage is 14%. In the next month, production of type A increases by 20% and production of type B decreases by 10%. The defective percentage for type B becomes 15%. If the combined defective percentage in the second month is to be 25% lower than the first month's combined defective percentage, what must be the defective percentage for type A in the second month?
- A. 7.5%
- B. 8.25%
- C. 10.5%
- D. 9%
Practice MCQ 15 · Difficult
A vessel contains a uniform salt solution with 30% salt by mass. First, 20% of the solution is removed and replaced with an equal mass of pure water. Next, 25% of the water then present evaporates, with no salt lost. After the remaining solution is mixed thoroughly, one-third of it is removed. Pure water is then added until the salt concentration becomes 20% by mass. The mass of water added in this final step is what percentage of the original mass of the solution?
- A. 20%
- B. 24%
- C. 26%
- D. 30%
Further reading
- NCERT Mathematics, Class VII, Comparing Quantities.
- NCERT Mathematics, Class VIII, Comparing Quantities.
- UPSC official website: Civil Services Examination notification and previous General Studies Paper II question papers.
- CBIC official GST portal: tax information and guidance.
- Reserve Bank of India: Monetary Policy Statement, 8 February 2023.
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