GMAT Focus Edition — Data Insights: Table Analysis · Graphics Interpretation · Multi-Source Reasoning · Two-Part Analysis
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Data Insights Lesson 17 of 20

Lesson 17:
Percentage Calculation & Base Logic

Master percentage calculations in DI contexts: percent change, percent of total, successive percentages, and base value recovery.

⏱ 50 mins
🎯 DI 75 to 88
📚 Prereq: Lessons 1–5
Note: Lesson 17 of 20 — Percentage Calculation & Base Logic.
1

Core Concepts: Percentage Calculation & Base Logic

Master percentage calculations in DI contexts: percent change, percent of total, successive percentages, and base value recovery.

Key Framework
% change = (New − Old) / Old × 100
Use the ORIGINAL as denominator, not the new value.
Reverse %: divide by (1 + rate)
To find the original before a 25% increase: divide by 1.25.
Successive %: multiply, don't add
A 20% increase then a 10% increase = ×1.20 × 1.10 = ×1.32, not 30%.
% of total = part / whole × 100
Always identify the correct "whole" before dividing.
2

Application Strategy

Step-by-Step Approach
①
Identify the question type and the specific metric being asked about.
②
Locate the relevant data in the chart, table, or tab.
③
Apply the key formula or logic rule from the framework above.
④
Verify that your answer satisfies the question as stated.
3

Visual Reference Diagram

Visual Framework for Lesson 17
📊
% change = (New − Old) / Old × 100
📈
Reverse %: divide by (1 + rate)
🔍
Successive %: multiply, don't add
📋
% of total = part / whole × 100
4

Quick Reference Rules

▸
% change = (New − Old) / Old × 100: Use the ORIGINAL as denominator, not the new value.
▸
Reverse %: divide by (1 + rate): To find the original before a 25% increase: divide by 1.25.
▸
Successive %: multiply, don't add: A 20% increase then a 10% increase = ×1.20 × 1.10 = ×1.32, not 30%.
▸
% of total = part / whole × 100: Always identify the correct "whole" before dividing.
5

10 Traps for Lesson 17

⚠ Confusing the key formula for this topic

Review the core rule: % change = (New − Old) / Old × 100

⚠ Reading the wrong data series

Always verify axis labels and legends before extracting values.

⚠ Ignoring units or scale

Check units on every axis before computing ratios or changes.

⚠ Treating estimates as exact

GI data requires interpolation — use approximate values and pick the closest answer.

⚠ Forgetting the denominator

Reverse %: divide by (1 + rate) — always identify what you're dividing by.

⚠ Applying simple average when weighted is needed

If group sizes differ, compute weighted average, not simple mean.

⚠ "All" statements need every row verified

One counterexample makes a universal statement False.

⚠ Scope: data sample ≠ full population

Conclusions are limited to the data range provided, not broader populations.

⚠ Confusing absolute and relative measures

Absolute change ($) and relative change (%) answer different questions.

⚠ Not using the complement when helpful

P(at least one) = 1 − P(none). In set logic, use complement for "not" conditions.

✦

10 Practice Questions

Q1 of 10
GI~550

A product price increased from $80 to $100. Percentage increase = ?

Explanation: 25%. % change = (100−80)/80 = 20/80 = 25%. The base is the original ($80), not the new price.
Q2 of 10
GI~600

After a 20% increase, a salary is $60,000. Original salary = ?

Explanation: $50,000. New = Original × 1.20. Original = $60,000/1.20 = $50,000.
Q3 of 10
GI~700

A product increased 10% in January, then decreased 10% in February. Net change from start:

Explanation: −1%. Start = 100. After +10%: 110. After −10%: 110×0.9 = 99. Net = −1%.
Q4 of 10
GI~700

Market share went from 15% to 18%. Percentage POINT change and relative % change are:

Explanation: 3 percentage points and 20% relative. Change in pp = 18−15 = 3pp. Relative % change = (18−15)/15 = 3/15 = 20%.
Q5 of 10
GI~700

A chart shows revenue grew 15% from Year 1 to Year 2 and 20% from Year 2 to Year 3. Overall growth from Year 1 to Year 3 = ?

Explanation: 38%. Year 1 to 3: ×1.15 × 1.20 = ×1.38 = 38% total growth (not 35%, because the second increase is on a higher base).
Q6 of 10
GI~650

A store discounts an item 25%, then adds 10% tax. If original price = $80, final price = ?

Explanation: $66. After 25% discount: $80×0.75 = $60. After 10% tax: $60×1.10 = $66.
Q7 of 10
GI~550

A pie chart shows Division A has 35% of revenue. Total revenue is $400M. Division A contributes:

Explanation: $140M. 35% × $400M = $140M.
Q8 of 10
GI~650

In a table, Column A shows values indexed to Year 1 = 100. Year 3 = 125. This means Year 3 is:

Explanation: 25% higher than Year 1. An index of 100 = base year. Index of 125 means the value grew 25% above the base year value.
Q9 of 10
GI~700

Revenue grew by $30M, which represents a 15% increase. Original revenue = ?

Explanation: $200M. If $30M = 15% of original: original = $30M/0.15 = $200M.
Q10 of 10
GI~700

Cost of goods fell 8%, saving $24,000. Original cost of goods = ?

Explanation: $300,000. $24,000 = 8% of original. Original = $24,000/0.08 = $300,000.
Lesson Summary
% change = (New − Old) / Old × 100

Use the ORIGINAL as denominator, not the new value.

Reverse %: divide by (1 + rate)

To find the original before a 25% increase: divide by 1.25.

Successive %: multiply, don't add

A 20% increase then a 10% increase = ×1.20 × 1.10 = ×1.32, not 30%.

% of total = part / whole × 100

Always identify the correct "whole" before dividing.