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Gauri went to the stationers 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?

Rs. 15
Rs. 15.70
Rs. 19.70
Rs. 20

Correct Answer: Rs. 19.70

Explanation:

Let the amount taxable purchases be Rs. x .

Then, 6% of x =	30
	100

⟹ x =	❨	30	x	100	❩ = 5.
		100		6

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

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