Question

Gauri went to the stationery stores 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

The correct option is C Rs. 19.70

Let the amount taxable purchase is x Rs.
Then 6% of x=$\frac{30}{100}$
$\frac{6}{100}\times x=\frac{30}{100}$
$x=\frac{30\times 100}{6\times 100}=5$
$\therefore$cost of tax free item=$[25-(5+.30\left)\right]$
$=25-5.30=19.70$