Rahul went to a shop and bought things worth Rs. 25 out of which 30 paise went on sales tax on taxable purchases. If the tax rate…

Question

Rahul went to a shop 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 total amount that Rahul paid for the taxable items?

1. A. Rs. 5
2. B. Rs. 5.30 (Correct answer)
3. C. Rs. 19.70
4. D. Rs. 20

Correct Answer

Option B — Rs. 5.30

Detailed Solution & Explanation

The correct answer is Rs. 5.30.

Key Points

• Sales tax = 30 paise = Rs. 0.30. Tax rate = 6%.
• Taxable purchase amount = 0.30 ÷ 0.06 = Rs. 5. Total paid for taxable items = Rs. 5 + Rs. 0.30 = Rs. 5.30. The remaining Rs. 25 − Rs. 5.30 = Rs. 19.70 was for tax-free items.

Additional Information

• Work backwards from the tax: if tax is 6% of the taxable amount, then taxable amount = tax ÷ 0.06 = 0.30 ÷ 0.06 = ₹5.
• The question asks for the total paid on taxable items, which is the pre-tax amount plus the tax: 5 + 0.30 = ₹5.30. Stopping at ₹5 is the intended trap, and it is offered as option A.
• The balance, 25 − 5.30 = ₹19.70, was spent on tax-free goods — offered as option C to catch a misread of the question.
• Keep units consistent from the start: 100 paise = ₹1, so 30 paise must become ₹0.30 before any division.