How to find the percent of increase - GRE Quantitative Reasoning

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Question

Harry and Gerry each own equal shares in a gardening company. Their partner, Izzy, owns 40% of the company. What is the percentage increase of the sum of Harry's and Gerry's shares above Izzy's share in the company?

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Answer

This basic percentage problem asks you to determine by what percentage the sum of Harry's and Gerry's share of the company is greater than ("exceeds") Izzy's share. Harry's and Gerry's share's are equal, and the sum is 60% of the company (100% – Izzy's 40% = 60%). 60% is 50% greater than 40% (0.40 * 1.5 = 0.60). Examinees may be tempted to go too far with the problem and mistake their task by finding how much greater Izzy's share is than either Harry's or Gerry's. Be careful to read instructions and translate keywords appropriately.

You may think the answer is 20% (60% – 40%), but this is the difference in terms of total shares in the company, not in terms of Izzy's shares, which is what the question is asking.

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