Question

Gauri went to the stationers and bought items 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

Answer 2

Cost price of items bought by Gauri in the stationers = 25
Price after deducting sales tax = 25 - 0.30 = 24.70
Let the amount of sales tax on taxable purchases be x
Then, 6$\%$ of x = 0.3 rs
x $=(0.3)(\frac{100}{6})$
x = 5
Cost price of the tax free items = 24.70 - 5 = 19.70
Hence, option C is the correct answer.The correct option is (C): Rs.19.70