NIELIT 2017 OCT Scientific Assistant A - Section A: 50

Question

Shirin went to a bakery 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?

• A. Rs. $12$
• B. Rs. $19.70$
• C. Rs. $19.10$
• D. Rs. $18.80$

Answer 1

The tax $= 30\; \text{paise} = Rs.\;0.3.$ The tax is $6\%.$

$Rs.\;0.3$ is $6\%$ of the taxable item.

Therefore, cost of taxable item $ = \dfrac{0.3\times 100}{6} = Rs.\;5$

$\therefore$ The cost of the tax free items $=25−(0.3+5) = Rs.\;19.70$

So, the correct answer is $(B).$