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Question 47

Gauri went to the stationers and bought items 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?

Solution

Cost price of items bought by Gauri in the stationers = 25

Price after deducting sales tax = 25 - 0.30 = 24.70

Let the amount of sales tax on taxable purchases be x

Then, 6% of x = 0.3 rs

x = (0.3)($$\frac{100}{6}$$)

x = 5

Cost price of the tax free items = 24.70 - 5 = 19.70

Hence, option C is the correct answer.

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