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. 15b)Rs. 15.70c)Rs. 19.70d)Rs. 20Correct answer is option 'C'. Can you explain this answer?

Question

Answer

To find the cost of the tax-free items, we need to subtract the sales tax from the total cost of the items.

Let's assume the cost of the tax-free items is x.

We know that the sales tax on taxable purchases is 30 paise (0.30 rupees) and the tax rate is 6%.

The sales tax can be calculated using the formula:
Sales tax = (Tax rate/100) * Cost of taxable items

So, we can write the equation as:
0.30 = (6/100) * (25 - x)

Simplifying the equation, we get:
0.30 = (6/100) * (25 - x)
0.30 = (6/100) * 25 - (6/100) * x
0.30 = 1.5 - (6/100) * x
(6/100) * x = 1.5 - 0.30
(6/100) * x = 1.20
x = (1.20 * 100) / 6
x = 20

Therefore, the cost of the tax-free items is Rs. 20.

Hence, the correct answer is option (d) Rs. 20.

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