GMAT Focus Edition — Data Insights: Table Analysis · Graphics Interpretation · Multi-Source Reasoning · Two-Part Analysis
Home Course Data Insights Lesson 17
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
Identify the question type and the specific metric being asked about.
Locate the relevant data in the chart, table, or tab.
Apply the key formula or logic rule from the framework above.
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.