Lesson 33 of 42 · Numerical reasoning
Calculating quickly by hand
Percentages by pieces, fraction equivalents, splitting products, cross-multiplying and estimating: fast, reliable arithmetic without a calculator.
About 20 minutes
In this lesson
- Compute percentages, products and quotients by hand with short, safe methods.
- Compare fractions and ratios exactly without long division.
- Decide from the options how precise a calculation needs to be, and check its order of magnitude.
The idea
Why hand calculation is a skill of its own
Calculators are not permitted in the Online Bocconi Test, and Bocconi describes the numerical reasoning calculations as simple. Simple does not mean instant: a multiplication done digit by digit takes time you could spend reading the data. This lesson makes the common calculations short and shows how to check them quickly.
Look at the options before you calculate
The options tell you how precise you need to be. If they are 6%, 12%, 25% and 40%, a rough estimate decides the question; if two of them are 8.75% and 9%, you need the exact value. Decide the precision first, then calculate only as far as you need.
Percentages by pieces
Build any percentage from easy pieces: 10% (move the decimal point one place), 5% (half of 10%), 1% (move it two places).
- 18% of 350 = 10% (35) + 5% (17.5) + 3% () = 63.
- 2.5% of 36,000 = .
A useful swap: % of equals % of . So 16% of 25 is 25% of 16, which is 4.
Fractions worth knowing as percentages
| Fraction | Percent | Fraction | Percent |
|---|---|---|---|
| 1/2 | 50% | 1/8 | 12.5% |
| 1/3 | 33.3% | 1/10 | 10% |
| 1/4 | 25% | 1/12 | 8.3% |
| 1/5 | 20% | 1/20 | 5% |
| 1/6 | 16.7% | 1/25 | 4% |
With these, 87.5% of 640 is 640 minus an eighth of 640: . And dividing by 0.125 is the same as multiplying by 8.
Multiplying and dividing by splitting
Split one factor into easy parts: . Or use a nearby round number: .
For division, simplify first: . Cancel common factors before dividing. To divide by 5, double and divide by 10.
Comparing fractions without dividing
To tell which of and is larger (all numbers positive), compare with . The larger product goes with the larger fraction. This is often faster than turning both into decimals, and it is exact.
Percentage change in one line
Percentage change = change ÷ starting value. Work out the change first, then look for an easy relationship with the base: an increase of 45 on 900 is .
Averages from a guess
To average a list of similar numbers, choose a round guess, add up the differences from it, and correct. For 96, 103, 99 and 106 with a guess of 100, the differences are −4, +3, −1 and +6, which sum to +4; spread over 4 numbers that is +1, so the mean is 101.
Check the size of the answer
Before choosing, ask whether the answer has the right order of magnitude. A 2.5% charge on €36,000 cannot be €9,000 (that would be 25%). A percentage below 100% of a number must be smaller than the number; 5% growth on a million is 50,000, not 500,000. Most hand-calculation errors are misplaced decimal points, and this check catches them.
Round late, and round both numbers the same way
If you must round, round once, near the end, and when rounding two numbers in a division, round both the same way (both up or both down) so the errors partly cancel. Rounding the numerator up and the denominator down pushes the result off twice.
Worked examples
Example 1: 35% of 260
What is 35% of 260?
10% of 260 is 26, so 30% is .
5% is half of 10%: 13.
35% = 30% + 5% = .
Check another way: .
Answer
- Both routes agree.
Example 2: Which ratio is larger?
Branch X converted 37 of 52 enquiries into sales; branch Y converted 43 of 61. Which branch had the higher conversion rate?
Compare with by cross-multiplying.
.
.
, so is larger. (As decimals: about 0.712 against 0.705.)
Answer
Branch X. Branch Y, with more sales in absolute terms, is the tempting wrong answer.
Example 3: Estimating a percentage change
Sales rose from 4,870 units to 5,360. Which is closest to the percentage increase: 8%, 10%, 12% or 15%?
The options are 2 or more points apart, so an estimate is enough.
Change: .
10% of 4,870 is 487, almost exactly 490. So the increase is just over 10% (about 10.06%).
Answer
About 10%. Dividing by the new value instead () would still round to the nearest option here, but on closer options that slip would cost the mark.
Example 4: An average from a guess
Monthly sales over five months were 48, 52, 47, 55 and 53 units. What was the average?
Guess 50. Differences: .
Sum of differences: . Spread over 5 months: .
Average . Check: , and .
Answer
51 units a month.
Common traps
Losing a decimal place
Under time pressure, 1.5% becomes 0.15 or 15%, and an option ten times too big or too small is waiting. Check the order of magnitude: 1% of a number is that number with the decimal point moved two places.
Dividing by the wrong base
A percentage change is computed on the new value instead of the old one. The result is close enough to look right and far enough to match a wrong option. Always divide by the starting value.
Estimating when the options are close
Rounding is quick, but when two options differ by a fraction of a percentage point, rounding can land on the wrong one. Read the options first and compute exactly when they are close.
Rounding in opposite directions
In a quotient, rounding the top up and the bottom down moves the result twice in the same direction. Round both the same way, or not at all.
Check yourself
Answer each question before you open its answer.
Question 1: An annual fee
Numerical reasoning
An investment fund charges an annual fee of 1.5% on a balance of €84,000. What is the fee?
- A.€126
- B.€1,260
- C.€1,500
- D.€12,600
Show the answer
Answer: B. €1,260
Working
1% of 84,000 is 840; 0.5% is half of that, 420. So 1.5% is euros. Check: .
Why the other options are wrong
- A. Ten times too small: this is 0.15% of the balance, a decimal slip.
- C. This is 1.5% of a rounded €100,000, not of €84,000.
- D. Ten times too large: this is 15% of the balance.
What carries over
Build a percentage from 1% and its halves, then check the order of magnitude against the options.
Question 2: Comparing profit margins
Numerical reasoning
Firm X had revenue of €640,000 and profit of €56,000. Firm Y had revenue of €450,000 and profit of €40,500. The profit margin is profit divided by revenue. Which firm had the higher profit margin, and by how much?
- A.Firm Y, by 0.25 percentage points
- B.Firm Y, by 2.5 percentage points
- C.Firm X, because its profit is larger
- D.Neither: both margins are 9%
Show the answer
Answer: A. Firm Y, by 0.25 percentage points
Working
X: , so 8.75%. Y: , so 9%. Firm Y's margin is higher by percentage points.
Why the other options are wrong
- B. Right firm, but the gap is ten times too large: 9% minus 8.75% is 0.25 points.
- C. A margin is profit relative to revenue. X's larger profit comes with much larger revenue.
- D. Rounding both margins to about 9% hides the gap. With options this close, compute exactly.
What carries over
Simplify a ratio by cancelling before dividing, and compute exactly when the options are close together.
Question 3: Population growth
Numerical reasoning
A city's population grew from 1,240,000 to 1,302,000. What was the percentage growth?
- A.0.5%
- B.About 4.8%
- C.5%
- D.6.2%
Show the answer
Answer: C. 5%
Working
Increase: . Percentage change: . Check: 5% of 1,240,000 is 62,000.
Why the other options are wrong
- A. Moves the decimal point one place too far: 62,000 is a twentieth of 1,240,000, which is 5%.
- B. Divides the increase by the new population, 1,302,000, instead of the starting one.
- D. Reads the increase of 62,000 as a percentage of a round million rather than of 1,240,000.
What carries over
Find the change, then look for a simple fraction of the starting value.
Key points
Look at the options first: they tell you how precise the calculation must be.
Build percentages from 10%, 5% and 1%, and know the common fractions as percentages.
Compare fractions by cross-multiplying instead of dividing.
Divide percentage changes by the starting value, and check the order of magnitude before choosing.
All questions here are original and written for UniExamer; none comes from the test maker.
Written by the UniExamer team with AI assistance. Every worked example and check question was re-solved by an independent checker before publication. No subject expert has reviewed this lesson yet. If you find a mistake, write to support@uniexamer.com.