1.  Gauri went to the stationers and bought things worth ₹ 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. ₹ 15
B. ₹ 15.70
C. ₹ 19.70
D. ₹ 20

Answer: Option C

Explanation:

Let the amount taxable purchases be ₹ x.

Then, 6% of x = 30
100

x = 30 x 100 = 5.
100 6

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