Question: Gauri went to the stationers and bought things worth Rs. 25, out of which 30 paise went on sales tax on taxable purchases. If the tax rate was 6%, then what was the cost of the tax free items?
[A].Rs. 15
Rs. 15.70
Rs. 19.70
Rs. 20
[A].
[B].
[C].
[D].
Answer: Option C
Explanation:
Let the amount taxable purchases be Rs. x.
Then, 6% of x = | 30 |
100 |
x = | 30 | x | 100 | = 5. | |
100 | 6 |
Cost of tax free items = Rs. [25 – (5 + 0.30)] = Rs. 19.70