Ghafoor 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

C. Rs. 19.70

Solution

Let the amount of taxable purchases be $Rupees$ $:$ $x$

Given, 6% of $x = 30 p a i s a = 100/ 30 Rupees$

$\Rightarrow x = (30/100 \times100/6) = 5$

$\Rightarrow$ Cost of tax free items: $[25 - (5 + 0.30)]$

$R s . 19.7 0 (Answer)$

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