Question

Gauri went to the stationery 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 1

Answer: (C)

Rs 19.70

Let the amount of taxable purchases be $Rs.x$

Given, 6% of $x=30paisa=\frac{30}{100}Rs$

$\Rightarrow x=(\frac{30}{100}\times \frac{100}{6})=5$

$\therefore$ Cost of tax free items $=Rs.[25-(5+0.30)]=Rs.19.70$