By the end of this chapter you'll be able to…

  • 1Apply the successive-percentage-change formula correctly, identifying the correct base at each step
  • 2Use alligation to solve mixture problems in one step instead of a full weighted-average setup
  • 3Apply relative-speed rules correctly (sum when approaching, difference when same-direction) including the km/h-to-m/s conversion
  • 4Add work rates rather than averaging times in time-and-work problems
  • 5Use the CI-SI 2-year difference shortcut and consecutive-year-amount trick to bypass full compound interest formula evaluation
  • 6Apply the Part-1 skip-penalty arithmetic to decide when to guess versus skip a slow arithmetic question
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Why this chapter matters in XAT
XAT's QA&DI leans harder on arithmetic than CAT's algebra-heavier style, making this the section's single largest topic by question count. Every sub-area — percentages, ratios, time-speed-distance, time-and-work, interest — is individually simple, so the real skill under no-calculator, five-option conditions is recognising the fast shortcut (alligation, successive-change formula, CI-SI difference trick) before starting a slower full calculation that the exam's time budget can't afford.

Arithmetic — XAT Quantitative Ability & Data Interpretation

No calculator, five options, and options close enough together that a rushed approximation lands on the wrong one as often as the right one. XAT arithmetic rewards a specific discipline: decide how much precision the question actually needs before you start calculating, not after.


1. What XAT actually asks

Arithmetic is estimated at roughly 7-9 of QA&DI's 28 questions across recent papers (see docs/exam-briefs/xat-2026-brief.md) — the single heaviest topic in the section, reflecting XAT's stated lean toward arithmetic and mensuration over the algebra-heavy style CAT favours. Every question carries five options and the standard +1/-0.25 marking.

The topic spans a recognisable set of sub-areas: percentages, ratio and proportion, averages and mixtures, time-speed-distance, time and work, and simple/compound interest. None of these are individually hard in isolation — the difficulty is entirely in execution speed and in resisting the five-option format's tightly-spaced traps.


2. Percentages — the base always matters

The single most common arithmetic trap across all MBA entrances, XAT included: percentage change calculated on the wrong base.

If a price rises 20% then falls 20%, the net change is not zero — the second 20% is calculated on the already-increased value. Starting at 100: rises to 120, then falls by 20% of 120 (24), landing at 96 — a net 4% decrease. This asymmetry, and the specific "successive percentage change" formula it generalises to, is tested constantly:

For the 20%-then-20% example: , confirming the 96 result without recomputing from scratch.


3. Ratio, proportion and mixtures

Ratio compares quantities of the same kind; a ratio can always be scaled to without changing its meaning. Proportion equates two ratios: means (cross-multiplication), the fastest way to solve for an unknown in a stated proportion.

Mixture problems (combining two quantities of different concentration, price, or speed) resolve fastest through the alligation shortcut:

This single formula replaces setting up and solving a full weighted-average equation, and is worth memorising cold — XAT's five-option format punishes the extra time a full algebraic setup costs relative to a direct alligation.


4. Time, speed and distance

Relative speed governs almost every XAT question in this sub-area: for two bodies moving toward each other, relative speed is the sum of their speeds; moving in the same direction, it is the difference. A boat's speed downstream is (boat speed + current speed); upstream is (boat speed − current speed) — the current always helps one direction and hinders the other by the same amount.

Unit conversion is the most common careless error here: , and forgetting this conversion (or inverting it) silently produces an answer off by a factor of , which is exactly the kind of error a five-option question is built to catch — a wrong-conversion answer often sits among the five options as a deliberate trap.


5. Time and work

If a person can complete a task in days, their work rate is of the task per day. Combined work rates simply add:

The trap to avoid: averaging the individual times directly (e.g., treating two workers who take 12 and 18 days as "would take 15 days together") is never correct — rates add, times do not. Work backward from a stated efficiency ratio when the problem gives one (e.g., "A is twice as efficient as B") by assigning A and B work rates in that ratio directly, rather than solving for absolute days first.


6. Simple and compound interest

For short time periods (2-3 years) and round rates, compound interest can be computed directly without the exponent, by applying the rate successively year over year — often faster under no-calculator conditions than evaluating a power. The difference between CI and SI over 2 years at rate has a direct shortcut worth memorising:

This shortcut alone resolves a recurring XAT question type — "find the difference between CI and SI on a sum over 2 years" — in one step instead of computing both amounts separately.


Worked examples

Question 1 of 3

Q1. A trader marks up an item's price by 40% above cost, then offers a 25% discount on the marked price. What is the trader's net profit or loss percentage?

Pick an option to check your answer.

Show explanation

Solution. Using the successive-change formula with : net change .

Verify directly: cost 100, marked up to 140, discounted 25% of 140 (35) to 105 — a 5% profit on the original cost of 100. The trap answers: (b) reverses the sign entirely; (c) uses only the markup and ignores the discount's compounding effect; (d) miscalculates the successive-change cross term. Answer: (a).

Question 2 of 3

Q2. Two pipes A and B can fill a tank in 12 hours and 15 hours respectively. Pipe C can drain the full tank in 20 hours. If all three pipes are opened together, how long will it take to fill the empty tank?

Pick an option to check your answer.

Show explanation

Solution. Combined rate . Using a common denominator of 60: .

Time to fill hours. The trap answers come from sign errors: (a) and (b) result from mishandling which rates add versus subtract; (e) drops pipe C's draining effect entirely, treating it as if only A and B were open (which alone would take hours, not matching any option here, showing the trap isn't a simple two-pipe calculation either). Answer: (c).

Question 3 of 3

Q3. A sum of money invested at compound interest amounts to ₹15,000 in 2 years and ₹16,500 in 3 years, at the same annual rate, compounded annually. What is the rate of interest?

Pick an option to check your answer.

Show explanation

Solution. The increase from year 2 to year 3 (₹16,500 − ₹15,000 = ₹1,500) is exactly one year's interest on the year-2 amount of ₹15,000, since compound interest applies the rate to the accumulated amount each year.

Rate . This shortcut — using the difference between consecutive years' amounts directly — avoids solving for the principal at all. Answer: (b).


8. Common traps

  • Applying a percentage change to the wrong base, especially in successive changes (a discount after a markup, or two consecutive price changes) — always identify what 100% refers to at each step.
  • Averaging times instead of adding rates in time-and-work problems — this single confusion produces a wrong answer that often appears as a deliberate five-option trap.
  • Forgetting the km/h to m/s conversion factor () or inverting it, in time-speed-distance problems — a factor-of-3.6 error is common and deliberately trapped.
  • Confusing relative speed's sum-vs-difference rule — moving toward each other adds speeds, moving in the same direction subtracts them; downstream/upstream follows the same logic with current speed.
  • Computing compound interest via the full exponential formula when a shortcut applies — for 2-year CI-vs-SI differences or short, round-rate periods, a direct shortcut is faster and less error-prone under no-calculator conditions.
  • Not using alligation for mixture problems, instead setting up a full weighted-average equation that costs more time than the five-option format allows.

9. When to guess, and why

Within your first 8 skips across all of Part 1, an arithmetic question requiring a long, error-prone calculation under time pressure is a reasonable one to skip, since QA&DI is XAT's most time-hungry section and a rushed calculation risks landing on a trap option rather than genuinely saving time. Beyond your 8th skip, a blind 1-in-5 guess has an expected value of exactly 0, while a blank costs -0.10 — mark your best remaining guess.

Because arithmetic options are often numerically close, even a rough estimate (checking magnitude, or the last digit of a multiplication) frequently eliminates two or three options before you need to guess blind, turning a late guess meaningfully better than chance.


Summary

  • Arithmetic is roughly 7-9 of QA&DI's 28 questions — the section's single heaviest topic, reflecting XAT's lean toward arithmetic over CAT's algebra-heavier style.
  • Percentage change must always be computed on the correct base; successive changes use , never simple addition.
  • Alligation solves mixture problems in one step, faster than a full weighted-average setup.
  • Relative speed adds when moving toward each other, subtracts when moving the same direction; remember the km/h-to-m/s conversion.
  • Time-and-work rates add; times never average directly — this is the chapter's most common single error.
  • The CI-vs-SI 2-year difference shortcut () and the consecutive-year-amount-difference trick both bypass slower full formula evaluation.
  • Past your 8th free skip in Part 1, even a rough magnitude estimate on a hard arithmetic question usually narrows five close options enough to make a guess meaningfully better than chance.

Key formulas & results

Everything to memorise for the exam hall, in one card. Screenshot this for revision.

Percentage change
percentage change = (new value − old value) / old value × 100
The base (old value) is what most errors get wrong, especially in successive changes.
Successive percentage change
net change = a + b + (ab/100) %, for signed percentage changes a and b
A 20% rise followed by a 20% fall is a NET −4%, not 0% — the classic trap this formula resolves instantly.
Alligation
(quantity of cheaper) / (quantity of dearer) = (dearer price − mean price) / (mean price − cheaper price)
Replaces a full weighted-average equation setup — memorise this cold for speed.
Relative speed
Toward each other: sum of speeds. Same direction: difference of speeds. Downstream = boat + current; upstream = boat − current
1 km/h = 5/18 m/s — forgetting or inverting this conversion is the most common careless error in this sub-area.
Combined work rate
combined rate = 1/n1 + 1/n2 + …; combined time = 1 / combined rate
Rates ADD. Times never average directly — this is the chapter's single most common error.
Simple and compound interest
SI = PRT/100; CI amount = P(1+R/100)^T
For short periods (2-3 years) with round rates, apply the rate successively year-over-year rather than evaluating the exponent directly.
CI−SI 2-year difference shortcut
CI − SI (2 years) = P(R/100)²
Resolves a recurring XAT question type in one step instead of computing both CI and SI amounts separately.
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Traps XAT sets — and how to dodge them

These are the exact option-traps and misreads that cost marks under negative marking.

WATCH OUT
Applying a percentage change to the wrong base in successive changes
Always identify what 100% refers to at each step — a discount after a markup is calculated on the MARKED price, not the original cost. Use the successive-change formula to avoid re-deriving this each time.
WATCH OUT
Averaging individual times instead of adding work rates
Two workers taking 12 and 18 days do NOT take 15 days together — convert to rates (1/12, 1/18), add them, then invert. This single confusion is the most common time-and-work error.
WATCH OUT
Forgetting or inverting the km/h-to-m/s conversion factor
1 km/h = 5/18 m/s exactly. A forgotten or inverted conversion produces an answer off by a factor of 3.6, and XAT frequently plants this exact wrong answer as one of the five options.
WATCH OUT
Confusing sum-vs-difference in relative speed problems
Moving toward each other: ADD speeds. Moving the same direction: SUBTRACT speeds. Downstream adds current speed to boat speed; upstream subtracts it — the current always helps one direction and hinders the other equally.
WATCH OUT
Computing compound interest via the full exponential formula when a shortcut applies
For 2-year CI-vs-SI differences, use P(R/100)² directly. For short round-rate periods generally, apply the rate successively rather than evaluating a power under no-calculator conditions.
WATCH OUT
Setting up a full weighted-average equation for a mixture problem instead of using alligation
Alligation solves the same problem in one line — memorise the ratio formula cold, since the full equation setup costs more time than XAT's five-option format allows.

Exam-pattern practice

PYQ-style questions with full solutions. Work through them as a readiness check — mark yourself honestly and get your gap report at the end.

Readiness check

Are you exam-ready for Arithmetic?

8 problems from this chapter. Try each one, reveal the worked solution, mark yourself honestly — get your gap report at the end.

8 questions~6 min

5-minute revision

The whole chapter, distilled. Read this the night before the exam.

  • Arithmetic is roughly 7-9 of QA&DI's 28 questions — the section's heaviest single topic, reflecting XAT's arithmetic-leaning style versus CAT.
  • Successive percentage change: a + b + (ab/100), never simple addition — a 20% rise then 20% fall is a net −4%, not 0%.
  • Alligation solves mixture problems in one line: (cheaper qty)/(dearer qty) = (dearer − mean)/(mean − cheaper).
  • Relative speed adds when approaching, subtracts when same-direction; downstream = boat+current, upstream = boat−current.
  • 1 km/h = 5/18 m/s — a forgotten or inverted conversion is a deliberately planted five-option trap.
  • Time-and-work rates ADD; times never average directly — this is the single most common arithmetic error across MBA entrances.
  • CI−SI over 2 years = P(R/100)² — a one-step shortcut for a recurring question type.
  • When a train crosses a platform or another object, the distance covered is the SUM of both lengths, not just the train's own length.
  • Under no-calculator conditions, apply compound interest successively year-over-year for short periods rather than evaluating the exponent directly.
  • Past your 8th free skip in Part 1, even a rough magnitude estimate on a hard arithmetic question usually narrows five close options enough for a meaningfully-better-than-chance guess.

XAT question blueprint

How this topic is asked, tier by tier — so you can prep to the pattern.

Typical weightage: Roughly 7-9 of QA&DI's 28 questions (each worth +1/-0.25), based on recent-paper analysis — not an officially published XLRI split

Question styleMarks eachTypical countWhat it tests
Percentage1~2Base identification and successive percentage change
Ratio and mixture1~1-2Alligation and proportion problems
Time-speed-distance1~2Relative speed, unit conversion, boats and streams
Time and work1~1-2Rate addition, efficiency ratios
Simple and compound interest1~1-2Interest formulas and the CI−SI difference shortcut
Prep strategy
  • First pass: memorise all shortcuts in this chapter (successive-change, alligation, relative speed rules, CI−SI difference) until they're automatic recall, not re-derivation.
  • Second pass: drill mixed-topic arithmetic sets under strict time limits, tracking specifically where a rough estimate could have eliminated options faster than full calculation.
  • Final pass: review every wrong answer from practice sets against this chapter's common-traps list, since XAT's five-option format plants these specific errors deliberately and repeatedly.

Exam-hall strategy

Battle-tested tips from mentors and toppers for this topic under the sectional clock.

  1. Decide the required precision before calculating — many XAT arithmetic questions can be resolved by elimination via rough magnitude, without a fully precise final computation.
  2. Memorise the alligation, successive-percentage-change, and CI−SI shortcuts cold — re-deriving them from first principles under time pressure costs marks elsewhere.
  3. Double-check which base a percentage change applies to before calculating, especially in multi-step successive-change problems.
  4. In time-and-work problems, always convert to rates first — never attempt to average or directly combine stated times.
  5. Watch specifically for the km/h-to-m/s conversion and the train-plus-platform-length trap — both are common, deliberately planted five-option distractors.
  6. Past your 8th free skip in Part 1, use a quick magnitude or last-digit check to narrow close numeric options before committing to a guess.

Beyond the exam

Where this skill shows up in the job you're competing for — and in life.

Financial modelling and interest calculations

Compound interest, EMI calculations and successive-discount pricing all use exactly the formulas and shortcuts drilled here, directly applicable to personal finance and financial-analyst roles.

Retail pricing and margin analysis

Markup-then-discount pricing (Q1's worked example) is the exact mechanic retailers use to set and communicate prices, and the successive-percentage-change trap is a genuine source of margin miscalculation in practice.

Resource and workforce planning

Time-and-work rate-addition logic directly applies to estimating combined team throughput or project completion timelines when multiple resources work in parallel.

Logistics and route planning

Relative speed calculations (closing speed, current-adjusted travel time) are used directly in logistics scheduling, shipping ETAs, and any planning involving multiple moving components.

Where else this topic is tested

Prepare once, score in every exam that asks it.

CAT (Quantitative Ability)High overlap in underlying concepts, though CAT's QA leans comparatively more algebra-heavy and XAT leans more arithmetic-heavy
IIFT / SNAP Quantitative AbilityHigh overlap — both test a similar range of arithmetic sub-topics at broadly comparable difficulty
Bank PO / SSC CGL Quantitative AptitudeVery high overlap — percentages, ratios, time-work and interest are core, heavily-tested components of most banking and SSC quant sections
GMAT Quantitative ReasoningConceptual overlap in arithmetic fundamentals, within a different (computer-adaptive, no five-option) format

Questions aspirants ask

Pulled from the Q&A community and mentor sessions.

This reflects XAT's overall QA&DI character as documented across recent papers — heavier on arithmetic, geometry and mensuration, and comparatively lighter on the algebra-heavy question styles CAT favours. Prioritise arithmetic fluency accordingly if optimising study time specifically for XAT.

A weighted-average equation always works, but it costs meaningfully more time — setting up variables, cross-multiplying, and solving — than the one-line alligation ratio. Given XAT's tight per-question time budget and five-option format, alligation is worth memorising cold rather than re-deriving each time.

Memorise the factor as a single number (5/18 to convert km/h to m/s, or 18/5 to convert m/s to km/h) rather than re-deriving it from first principles (1000m/3600s) under time pressure — re-deriving it each time is where the inversion error usually creeps in.

There's no official target, but given QA&DI's 28 questions share roughly 55-60 minutes of an undivided 170-minute Part 1 (alongside VA&LR and DM), aim to resolve a straightforward arithmetic question within a minute — if a question demands a long, error-prone calculation past that, it's often more efficient to bank it as one of your 8 free skips.

Memorise them. Deriving formulas from first principles under exam time pressure both costs time and introduces more opportunities for error — the shortcuts in this chapter (successive-change, alligation, CI−SI difference) exist specifically because they're faster and more reliable than re-derivation.
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