Question

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?

Answer 1

Answer:

The cost of tax free items = Rs 19.7

Explanation:

Total bill that the person paid = Rs 25

Tax paid = 30 paise = 30/100 Rs

Tax percent = 6%

Let the taxable amount = y

Let the non-taxable amount = x

x is the taxable amount,

y is the non-taxable amount.

The taxable amount + the non taxable amount + the tax = Rs 25

x + (y + 6% of y) = 25

Given that;

6% of y = 30/100

(6/100) * y = 30/100

y = 5

x + [5 + (6/100) * 5] = 25

x + [500 + 30]/100 = 25

100x + 530 = 2500

100x = 1970

x = 19.7 Rs

Therefore, the cost of tax free items = Rs 19.7

Answer 2

Answer:

19.70

Explanation:

Let the amount taxable purchases be Rs. x.

Then, 6% of x = 30/100

x=(30/100*100/6)=5

Cost of tax free items = Rs. [25 - (5 + 0.30)] = Rs. 19.70