Rahul went to a shop 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?
Answers
Rs.25 contains sales tax and tax rate included
First we need to find taxable amount
TAX AMOUNT=TAXABLE AMOUNT ×TAX RATE
let taxable amount be X
So
Tax amount=X × 6%
=6/100 × X
Total value=Taxable amount + tax amount
25=X + 6X/100
25=106X/100
X=25×100/106
X=23.58RS
NOW,
TAX AMOUNT=23.58 × 6/100
=1.41rs
Now,
30 Paisa is sales tax and 1.41rs tax
we have to minus from the taxable amount
We get,
23.58-1.41- 30 paisa
23.58-1.41-0.3 RS.
21.87rs.
Therefore, tax free amount is
21.87rs
HOPE IT HELPS
MARK ME AS BRAINLIEST
"The cost of the tax-free items will be estimated based on the below procedure:
The total cost of the item is Rs 25
30 Paise is the tax amount he has given out from the 25 rupees. With this, we can find the total tax incurred.
Incurred tax = 30/100Answer : Option C
Now, the cost of the taxt free items is taken as X.
The tax rate is already given as 6%
Therefore, (25−30/100−X)6/100 =30/100
On solving the above, you will get 25-0.3-X=5
X=25-5-0.3
X=19.70 Rs.
Answer = 19.70 Rs."