Question 84

A person paid a bill of Rs.25 that included 30 paise as sales tax at the rate of 6% on taxable items. What was the cost of the tax free items?

Solution

Total cost of the items he purchased = Rs.25

Given that out of this Rs.25, 30 Paise is given as tax

= Total tax = 30 Paise

Total tax incurred = 30 Paise = = Rs.$$\frac{30}{100}$$

let the cost of the tax free items = x

given tax rate = 6%

(25−$$\frac{30}{100}$$−x)$$\frac{60}{100}$$=$$\frac{30}{100}$$

=6(25−0.3−x)=30

=(25−0.3−x)=5

x=25−0.3−5=19.7

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