QUANT

DI
Approximation
& Percentage
innovation

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eBook
 Table of Contents

Chapter Topic Page No.

No.
1 Mastering Calculations 1
and Approximations
2 Break-up method of 3
Multiplication
3 Calculating Percentages 4
when number is
required
4 Calculating Percentage 8
when Percentage is
required
5 Calculating Fractions 11
6 Calculating Ratios to 12
Decimals
7 Percentage Change 16
(10-1 approach )
8 Decimal and Fractions 21
to be remembered

1
Chapter 1: Mastering Calculations and
Approximations.
You must read the options along with the question.
The extent to which you will do calculations, depend
upon how far your options are. If the options are
close, you need to do exact calculations. If the
options are far, then approximation will work. That's
why; you must glance through options after reading
the question and only then start solving questions.

Use of this technique requires the ability to judge

whether options are close or far. There is no set
method for this. This judgement develops by practice
and conscious effort to decide whether options are
far or near.
Break-up method of Subtraction

a) Calculate: 512 – 289

Although what we asked here is relatively simple,
most of you would opt to write in order to find the
answer. Just adopt a simple approach. Take one
completely rounded number, which falls between
these two numbers e.g. 500. The first no. is 12 more
than that and the second number is 211 less than
that. Thus the difference between the two numbers
happens to be 12 + 211 = 223.

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b) Solve: 857 – 532
In this case, the best way is 800 – 500 = 300 and 57
– 32 is 25. Thus the answer happens to be 325.
But always keep in mind one thing especially in the
case of both of the examples discussed above, the
writing part was just to convey the method to you. If
you do not make a habit of doing this mentally
writing it down will not help you out much in the long
run.

c) Solve: 321.43 – 169.59

Sol: 321 + 0.43 – (170 – 0.41) = 151.84

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Chapter 2: Break-up method of
Multiplication
a) Solve: 42 × 7
42 can be broken up as (40 + 2).
So, (40 + 2) × 7 = 280 + 14 = 294
42 is broken in such way that multiplication becomes
easy.
We could have broken it as 39 + 3 also, but
multiplying 39 with 7 is not easy. So, 42 is broken as
40 + 2 since solving 40 × 7 and 2 × 7 is much easier.

b) Solve: 89 × 12
= (90 – 1) × 12 = 1080 – 12 = 1068
Or = 89 × (10 + 2) = 890 + 178 = 1068.
So, you can break any number, but as you must have
observed breaking 89 makes it easier as compared
to breaking 12. This quality of knowing which
number to break develops with practice.

c) Solve: 236 × 23
= 236 × (20 +3) = 4720 + 708 = 5428.

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Chapter 3: Calculating Percentages when
number is required
Terminology: Formula for %age is

% = (number / base) × 100.

So, if you have to calculate 20 as % of 50, you will
solve it by = (20/50) × 100 = 40 where 20 is the
number, 50 is the base and 40 is the %.

We will follow this terminology throughout this

course.

When a number needs to be calculated, mostly use

of a formula can be a lengthy process. Let’s explore
a shortcut. For this shortcut, remember how to
calculate 10 %, 1 % and 0.1 %. Calculating these three
percentages is the simplest thing that you can do
with numbers. You do not have to write anything for
this.
You just move the decimal place for 10% one place,
for 1% two places and for 0.1% three places and so
on.
So, 10% of 2456 = 245.6, 1% of 2456 = 24.56, .1% of
2456 = 2.456
So now, let’s see a shortcut. Because these
percentages are easy to calculate, you should try to
break any percentage given in the form of these
three percentages.
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a) Solve: 20 % of 2456.
20% can be broken as 2 × 10%  10% is 245.6.
 So, 20% = 2 × 245.6 = 491.2

b) Solve: 22 % of 2456
22 can be broken as 2 × 10% + 2 × 1%
 2 × 245.6 + 2 × 24.5 = 491.2 + 49 = 540.2

c) Solve: 74 % of 2456
74% can be broken as 7 × 10% + 4 × 1%
 7 × 245.6 + 4 × 24.5 = 1719.2 + 98 = 1817.2.

Here for the same question alternately you should

have thought that 74% = 75% - 1%. Why you should
think like this is because 75% = 3/4. Thus you can
calculate 2456 × 3/4 = 1842. Subtract from this 1% i.e.
24.56 and you get 1817.4.
You must have observed in these examples, that % is
broken in such manner that 1 get all things as 10%,
1%, or .1% etc.

d) Solve: 48 % of 314
48% can be broken as
5 × 10% - 2 × 1%
 5 × 31.4 - 2 × 3.1
 157 - 6.2 = 150.8

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Kindly notice the breakup here in these questions.
48% can be broken as 4 × 10% + 8 × 1%. But we know
multiplying with 8 is tougher than multiplying by 2.
So, we broke 48% as 5 × 10% - 2 × 1%.
Here for the same question alternately you should
have thought that 48% = 50% - 2%. Why you should
think like this is because 50% = 1/2. Thus you can
calculate 314 × 1/2 = 157. Subtract from this 2% i.e.
6.28 and you get 150.8.

e) Solve: 26 % of 924.
= 2 × 92.4 + 6 × 9.2  184.8 + 55.2  240

Here for this question, you should have thought that

26% = 25% + 1%. Why you should think like this is
because 25% = 1/4. Thus you can calculate 924 ×
1/4 = 231. Add in this 1% i.e. 9.24 and you get 240.2.
Here the objective of doing it in two ways is very
simple. This is because fractional values of the
decimals and percentages are very important and
one method which is the best for one kind of
question may not be the best for another question.
Thus having calculative strengths i.e. tables, squares,
cubes and fractions with you is very important.

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Chapter 4: Calculating Percentages when %
is required

a) Solve: 15 is what % of 40.

For solving this type of questions also, we use the
basic break-up method, i.e., we use 10%, 1% and
0.1% of base
10% of 40 is 4. So, 30% will be 3 × 4 =12.
15 can be written as 12+3 where 12 is 30% of 40.
1% of 40 is .4. So, 7% will be 2.8.
15 can be further written as 12(30%) + 2.8(7%) +
.2.

So, 15 will be slightly more than 37% of 40. Don't

worry if the method is not very clear now. It will take
time to understand. Let's see the method again with
detail notes.

First be clear that the exam you are going to take is a

multiple choice exam and you do not have to write
the exact answer, rather you have to choose the right
answer from the choices given. Simply see that 10%
of 40 is 4, thus 40% of 40 will be 16, whereas you
only require 15, thus it can very well be stated that
the answer is close to 40%, but is slightly less than
that.

b) Solve : 26 is what % of 120.

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10% of 120 = 12 so, 20% will be 24.
(we calculate 20% as it takes us near to 26)
26 = 24 + 2
(Here 24 we got from above)
 1% of 120 = 1.2 so, 2% will be 2.4

(We calculate 2% as it takes us near to 2, the

remainder above). So, 26 = 24 (20%) + 2 (2% approx.)
= 22% approx.

Here we knowingly took simple numbers to explain

the method and we wrote too much just to explain
the method. But once you have understood this
method, you can calculate big & complex numbers
without writing much.

Alternately 10% is 12, and 20% will be 24. The

required no. is 26, thus can be stated that the answer
is close to 20% but is slightly more than that.

c) Solve: 37.4 is what % of 237

7.4 = 23.7 (10%) + 14.4 (6%) - 0.7 (.3%) = 15.7%
(app.)
This is the maximum writing you need to do once you
have mastered this method. Let's see the
calculations in detail. 23.7 (10%) is clear to you by
now. 1% of 237% is 2.37%. We can round this off to
2.4. So 6% will be 14.4  23.7 (10%) + (6% approx.) =
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38.1 (16% approx.). But we need to calculate 37. So,
subtract .7 that is approximately. 3 %.

Alternately 10% is 23.7, and thus 5% will be 11.8.

Thus the sum of these two becomes 35.5 and 1% of
the number is 2.37, which will make the total more
than 37.4. Thus the answer is slightly less than 16%.

d) Solve: 556.7 is what % of 797

Following the alternate method here 10% is 79.7 and
70% will be 555. The answer is close to 70%, but is
slightly more than that.

9
Chapter 5: Calculating fractions
Though we can solve fractions by the break-up
method, some fractions can be solved by rounding
off or approximations also. Let's see

Solve: 12 / 61
Here 61 can be written as 60.
So, 12 / 61 becomes 12 / 60 = 1 /5 = .2
But 0.2 isn't the actual answer. It is the approximate
answer. The actual answer will be different from 0.2.
But the question is whether more than 0.2 or less
than 0.2.
Since we decreased the denominator, the actual
answer will be less than the approximate answer.
So the actual answer will be something like 0.18 or
0.19.
Some points which help to get the approximate
answer:
If the denominator is increased, then the actual
answer is more than the approximate answer.
If the denominator is decreased, then the actual
answer is less than the approximate answer.
If the numerator is increased, then the actual answer
is less than the approximate answer.
If the numerator is decreased, then the actual answer
is more than the approximate answer.

10
Chapter 6: Converting ratios to decimals
For converting ratios into decimals, we use the same
break-up method discussed earlier.

Convert 116:177 into decimals.

Here, you need to divide 116 by 177. Use the break-
up method for decisions.
116 / 177 = 106 (60%) + 10 (6%approx.) = 66% = 0.66
However, instead of using the break-up method you
can use rough approximations also. So, 116 / 177
can be rewritten as 116 / 180 = .65. As the
denominator was increased, so the actual expression
will be more than .65.
Change of units
1 lakh has five zeroes = 1, 00,000
1 crore has seven zeroes = 1, 00,00,000
The British system of units works with the help of
three zeroes.
1 thousand has 3 zeroes.
1 million has six zeroes = 1,000,000
1 billion has nine zeroes = 1,000,000,000
So, 1 million = 10 lakhs
So, 1 billion = 1000 million or 100 crores.
1 Km = 1000 m.
1 m. = 100 cm.
1 inch = 2.5 cm.
1 foot = 12 inch = 30 cm.
1 yard = 3 foot.
11
Chapter 7: Percentage Change (10 to 1
Approach)

We need to calculate 21% of 578. A good

approximation of a percentage change can be done
using the 10 to 1 approach. In the 10 to 1 approach,
one starts by calculating the rounded off values
representing 10% and 1% of the number. Now 10% of
578 is 58 (rounded off) and 1% is 6 (rounded off).

Now we can calculate any percentage of this number

by using 10% and 1%

To calculate 21% of this number, we start by getting

20%, which is 10% × 2 = (58 × 2) = 116. We now add
1% i.e. 6 in this and get the answer as 122.

To calculate 19%, we subtract 1% from 20% and get

the answer as 116 – 6 = 110.

Now let’s say a problem requires us to calculate 52%

of 281. Its 10% is 28 and 1% is 3, both being rounded
up values. First, we find 50% of this number i.e. 140
(half of the number) and then 2% of this will be
added in this i.e. 6 to get the answer as 146.

Knowledge of percentage change is also important

for cracking data interpretation questions. The
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formula that we use for percentage change from P to
Q is: 100 × (Q – P)/P In the pressure of an exam,
especially when we are working with larger numbers,
we take more time when we write. So let’s try to do
this mentally.

We have to find the percentage change from 271 to

353. Here the difference between the two numbers
are 82 and 10% of the base value i.e. 271 is 27. How
many 27s can fit into 82? Three times of 27 is 81.
Hence it is approximately 30%.

Let us take another example, say find percentage

change from 911 to 938. The difference between the
two is 27. In this case, 10% is 91 and 1% is 9.
Multiplying 9 by 3 we get 27. Hence percentage
change is 3%.

To conclude, the 10 to 1 approach can be used to

calculate percentage change mentally, thereby saving
precious time in an exam!
Example 1. What is the percentage change from 256
to 280?

1. 2.789% 2. 15.302%
3. 9.375% 4. 11.471%

13
Sol. The difference between 256 and 280 is 24. In
this case, 10% of 256 is 25. Hence, percentage
change is less than or nearer to 10%. Therefore, only
3rd option satisfies.

Example 2. What is the percentage change from 291

to 310?

1. 2.789% 2. 6.529%
3. 15.417% 4. 25.136%

Sol. The difference between 291 and 310 is 19. In

this case, 10% of 291 is 29.1 and 5% of 291 is 14.5.
Also, 1% of 291 is 2.91 and 2% of 291 is 5.82. Now,
5% +2%= 7% (14.5 + 5.82=20.32). Hence, percentage
change is slightly less than 7%. Therefore, only 2nd
option satisfies.

Example 3. What is the percentage change from 576

to 689?

1. 8.791% 2. 19.610%
3. 13.178% 4. 45.789%

Sol. The difference between 576 and 689 is 113. In

this case, 10% of 576 is 57.6. Multiplying 57.6 by 2
we get approx. 114. Hence, percentage change is

14
slightly less than 20%. Therefore, only 2nd option
satisfies.

Example 4.What is the percentage change from 372

to 542?

1. 45.698% 2. 39.78%
3. 65.789% 4. 25.798%

Sol. The difference between 372 and 542 is 170. In

this case, 100% of 372 is 372 and 50% of 372 is 186.
Also 1% of 372 is 3.72 and Multiplying 3.72 by 4 we
get approx 14. Now, 50%-4%= 46% (186-14= 172).
Hence, percentage change is slightly less than 46%.
Therefore, only 1st option satisfies.

Example 5.What is the percentage change from 698

to 912?

1. 55.781% 2. 49.213%
3. 24.712% 4. 30.659%

Sol. The difference between 698 and 912 is 214. In

this case, 10% of 698 is 69.8. Multiplying 69.8 by 3
we get approx. 209. Hence, percentage change is
slightly greater than 30%. Therefore, only 4th option
satisfies.

15
Example 6. What is the percentage change from 113
to 395?

1. 290.68% 2. 225.10%
3. 249.55% 4. 200.25%

Sol. The difference between 113 and 395 is 282.

Multiplying 113 by 2 we get 226. In this case, 50% of
113 is 56.5. Now, 200% +50%= 250%
(226+56.5=282.5).Hence, percentage change is
slightly less than 250%. Therefore, only 3rd option
satisfies.

Example 7. What is the percentage change from 98

to 275?

1. 180.612% 2. 160.01%
3. 280.612% 4. 225.16%

Sol. The difference between 98 and 275 is 177.

Multiplying 98 by 2 we get 196. Hence, percentage
change is less than or nearer to 200%. Therefore,
only 1st option satisfies.

Example 8. What is the percentage change from 72

to 578?

1. 802.78% 2. 650.231%
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3. 702.778% 4. 714.175%

Sol. The difference between 72 and 578 is 506.

Multiplying 72 by 7 we get 504. Hence, percentage
change is greater than and nearer to 700%.
Therefore, only 3rd option satisfies.

Example 9. What is the percentage change from 524

to 26?

1. -75.167% 2. -95.038%
3. -101.203% 4. -80.273%

Sol. From initial to final, values are decreasing so

that answer will be negative. The difference between
524 and 26 is 498. In this case, 10% of 524 is 52.4
and 5% of 524 is 26.2. Now, 100% -5%= 95% (524-
26.2=497.8). Hence, percentage change is greater
than and nearer to 95%. Therefore, 2nd option
satisfies.

17
Example 10. What is the percentage change from
816 to 164?

1. -79.901% 2. -85.791%
3. -65.123% 4. 79.90%

Sol. From initial to final, values are decreasing so

that answer will be negative. The difference between
816 and 164 is 652. In this case, 10% of 816 is 81.6
and Multiplying 81.6 by 2 we get 163.2. Now, 100% -
20%= 80% (816-163.2 = 652.8). Hence, the
percentage change is slightly less than and nearer to
80%. Therefore, 1st option satisfies.

18
Chapter 8: Decimals and Fractions to be
remembered
You get many questions in the exams based on
Percentage, Profit, Interest etc. in which you have to
calculate, say 87.5 % of 800, 58.33 % of 2400 etc.
Calculating these values with the help of traditional
methods is time-consuming. If you have the fraction
approach, you can crack these easily i.e., and if you
know that 87.5 % is just 7 8 th of the number and 58.33
% is 7 12 th of the number, then it becomes easy to
calculate.

% age Fraction % age Fraction

50 % 1
2
55 5 9 % 5
9
33 3 %
1 1
3
77 7 9
% 7
9
66 2 3
% 2
3
88 8 9
% 8
9
25 % 1
4
75 % 3
4
9 111 % 1
11
20 % 1
5
18 211 % 2
11
40 % 2
5
27 311 % 3
11
60 % 3
5
36 411 % 4
11
80 % 4
5
45 511 % 5
11
54 611 % 6
11

19
 16 2 3 % 1
6
63 7 11 % 7
11
83 1 3 % 5
6
72 811 % 8
11
14 2 7
% 1
7
81 911
% 9
11
90 1011 % 10
11
12 1 2 % 1
8
37 1 2 % 3
8
8 13 % 1
12
62 1 2 % 5
8
41 2 3 % 5
12
87 1 2 % 7
8
58 1 3 % 7
12
91 2 3 % 11
12

11 1 9 1
9
6 23 % 1
15
%
22 2 9 % 2
9
6 14 % 1
16
44 4 9 % 4
9 5% 1
20

Anything doubles to increase by 100 % and becomes

200 %. Anything trebles to increase by 200 % and
becomes 300 % and so on.

20