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Question 1:
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?
A. Rs. 15
B. Rs. 15.70
C. Rs. 19.70
Feedback Let the amount taxable purchases be Rs. x.
Then, 6% of x = 30/100
x = ( (30/100) X (100/6) ) = 5.
Cost of tax free items = Rs. [25 - (5 + 0.30)] = Rs. 19.70
D. Rs. 20

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