Kibria went to the stationers and bought things worth Tk. 25, out of which 30 paisa was sales tax on taxable items. If the tax rate is 6%, then what was the cost of the tax free items?

Kibria went to the stationers and bought things worth Tk. 25, out of which 30 paisa was sales tax on taxable items. If the tax rate is 6%, then what was the cost of the tax free items?

A Tk. 15

B Tk. 15.70

C Tk. 19.70

D Tk. 20

Solution

Correct Answer: Option C

Let the amount taxable purchases be Rs. x.

Then, 6% of x = 30 100

x = 30 x 100