Daniel went to a shop and bought things worth Rs. 25, out of which 30 Paise went on sales tax on ...
Daniel went to a shop 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?
Answer/Solution
19.7
Steps/Work
Total cost of the items he purchased = Rs.25
Given that out of this Rs.25, 30 Paise is given as tax
=> Total tax incurred = 30 Paise = Rs.30/100
Let the cost of the tax free items = x
Given that tax rate = 6%
∴ (25−30/100−x)6/100 = 30/100
⇒ 6(25 −0.3 −x) = 30
⇒ (25 − 0.3 − x) = 5
⇒ x = 25 − 0.3 − 5 = 19.7
A
Given that out of this Rs.25, 30 Paise is given as tax
=> Total tax incurred = 30 Paise = Rs.30/100
Let the cost of the tax free items = x
Given that tax rate = 6%
∴ (25−30/100−x)6/100 = 30/100
⇒ 6(25 −0.3 −x) = 30
⇒ (25 − 0.3 − x) = 5
⇒ x = 25 − 0.3 − 5 = 19.7
A