Jagan went to the book shop and bought things worth Rs. 30, out of which 25 paise went on sales tax on taxable purchases. If the tax rate was 5%, then what was the cost of the tax free items?
Solution: let the amount of taxable purchases be Rs. X.
Then, 5% of x= 25/100
=> x= (25/100 *100/5) = Rs. 5
.'. Cost of tax free items = Rs.[30-(5+0.25)] = Rs. 24.75
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