Rahul went to a shop and bought things worth Rs. 26, out of which 30 Paise went on sales tax on ...

Rahul went to a shop and bought things worth Rs. 26, 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?

Quiz

Answer/Solution

Rs 20.70

Steps/Work

Explanation :
Let the cost of the tax items = x
Given that tax rate = 6%
Cost of tax items, x*(6/100) = 30/100
x = 5 rs
Now non taxable item = total cost - cost for taxable item - tax
= 26 - 5 - 0.30
=20.70
Answer : C