Question

The sales tax on a certain item has been reduced to $680 from $850. What is the reduction percentage in the sales tax on that item?

• A. $30$%
• B. $20$%
• C. $40$%
• D. $25$%

Answer 1

The correct option is B $20$%

Sales tax before reduction $=$$$850$
Sales tax after reduction $=$$$680$
Reduction in sales tax $=850-680$
$=$ $$170$
Fraction of sales tax reduced $=\frac{170}{850}$
$=\frac{170\times 100}{850\times 100}$
$=\frac{100}{5\times 100}$
$=\frac{20}{100}$
$=20$%
$\therefore$ , percentage of sales tax reduced is 20%