Question
Gauri went to the stationers 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: Option C
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Let the amount taxable purchases be Rs. x.
Then, 6% of x = \(\frac{30}{100}\)
x = \(\left(\frac{30}{100}\times\frac{100}{6}\right)=5.\)
So, Cost of tax free items = Rs. [25 - (5 + 0.30)] = Rs. 19.70
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