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?

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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

[B].

Rs. 15.70

[C].

Rs. 19.70

[D].

Rs. 20

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