Kamal went to a shop and bought things worth Tk Out of which 30 paisa went on sales tax on taxable purchases. If the tax rate was 6%, then what was the cost of the tax free items?

Kamal went to a shop and bought things worth Tk Out of which 30 paisa went on sales tax on taxable purchases. If the tax rate was 6%, then what was the cost of the tax free items?

A 15

B 15.70

C 19.70

D 20

Solution

Correct Answer: Option C

total=taxable cost+tax free cost + tax so, taxable cost=(25-x-0.3)

now, taxable cost* rate of tax(%)=tax so (25-x-0.3)*6/100=0.3

so,tax free price = ( 20-.3) =17.70 tk