Daniel went to a shop and bought things worth Rs. 50, out of which 90 Paise went on sales tax on ...
Daniel went to a shop and bought things worth Rs. 50, out of which 90 Paise went on sales tax on taxable purchases. If the tax rate was 15%, then what was the cost of the tax free items?
Answer/Solution
C)43.1
Steps/Work
Total cost of the items he purchased = Rs.50
Given that out of this Rs.50, 90 Paise is given as tax
=> Total tax incurred = 90 Paise = Rs.90/100
Let the cost of the tax free items = x
Given that tax rate = 15%
∴ (50−90/100−x)15/100 = 90/100
⇒ 15(50 −0.9 −x) = 90
⇒ (50 − 0.9 − x) = 6
⇒ x = 50 − 0.9 − 6
= 43.1
C
Given that out of this Rs.50, 90 Paise is given as tax
=> Total tax incurred = 90 Paise = Rs.90/100
Let the cost of the tax free items = x
Given that tax rate = 15%
∴ (50−90/100−x)15/100 = 90/100
⇒ 15(50 −0.9 −x) = 90
⇒ (50 − 0.9 − x) = 6
⇒ x = 50 − 0.9 − 6
= 43.1
C