Rahul 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? Answers
A) Rs. 15	B) Rs. 17	C) Rs. 19.7	D) Rs. 21	E) Rs. 22
Total cost of the items he purchased = Rs.25   Total tax incurred = 30 paise = Rs.   30   100   30100   Let the cost of the tax free items   =   x   =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   Option Rs. 19.7
<result>C</result>
Rahul 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?