Graduate Management Admission Test (GMAT) Practice Test

What is a key advantage of using a total of 1000 when calculating percentages?

1. It simplifies multiplication

2. It makes comparison easier

3. It converts percentages into whole numbers

4. It allows easier addition of fractions

The correct answer is: It converts percentages into whole numbers

Using a total of 1000 when calculating percentages provides a significant advantage because it directly converts percentages into whole numbers. This clarity arises from the fact that a percentage is essentially a fraction out of 100. Therefore, when you equate any percentage to a total of 1000, it becomes straightforward to find out what that percentage represents in whole numbers. For instance, if you have a percentage like 15%, it can simply be calculated as 15% of 1000, resulting in 150. This approach eliminates the need for fractional calculations or decimals, allowing for quick and intuitive understanding of what the percentage signifies in a tangible context. Consequently, this method facilitates easier interpretation and communication of percentage-based data in everyday situations, such as financial reports or statistical analyses. Other options might not hold the same level of immediate clarity or application in percentage calculations. Simplifying multiplication is a benefit of using particular numbers but does not specifically relate to percentage calculations in the way that using 1000 does. Making comparisons easier could be relevant, but the specific conversion of percentages into whole numbers is a more direct advantage. Additionally, while adding fractions can sometimes become easier in certain contexts, it does not directly pertain to the percentage calculation process like the use of a