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?
A. Rs. 15
B. Rs. 15.70
C. Rs. 19.70
D. Rs. 20
Answer: Option C
Solution(By Examveda Team)
Let the amount taxable purchases be Rs. x$$\eqalign{ & {\text{Then}},6\% \,\,{\text{of}}\,x = \frac{{30}}{{100}} \cr & \Rightarrow x = {\frac{{30}}{{100}} \times \frac{{100}}{6}} = 5 \cr & \therefore {\text{Cost of tax free items}} \cr & = {\text{Rs}}{\text{.}}\left[ {25 - \left( {5 + 0.30} \right)} \right] \cr & = {\text{Rs}}{\text{.}}\,19.70 \cr} $$
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