Daniel went to a shop and bought things worth Rs. 40, 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? Choose the correct answer:
A) A)34.7  B) B)20  C) C)21.3  D) D)21.5  E) E)22
Total cost of the items he purchased = Rs.40   Given that out of this Rs.40, 30 Paise is given as tax   =&gt; Total tax incurred = 30 Paise = Rs.30/100   Let the cost of the tax free items = x   Given that tax rate = 6%   ∴ (40−30/100−x)6/100 = 30/100   ⇒ 6(40 −0.3 −x) = 30   ⇒ (40 − 0.3 − x) = 5   ⇒ x = 40 − 0.3 − 5   = 34.7   34.7ns - 34.7
<result>A</result>
Daniel went to a shop and bought things worth Rs. 40, 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?