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?  Choose the correct choice:
A) 19.7
B) 20.7
C) 22
D) 21.4
E) 21.5
Total cost of the items he purchased = Rs.26   Given that out of this Rs.26, 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%   ∴ (26−30/100−x)6/100 = 30/100   ⇒ 6(26 −0.3 −x) = 30   ⇒ (26 − 0.3 − x) = 5   ⇒ x = 26 − 0.3 − 5 = 20.7   20.7
<result>B</result>
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?