Mike went to the bakery and bought eatables worth $ 25, out of which 30 cents went on sales tax on taxable purchases. If the tax rate was 6%, then what was the cost of the tax free?
To determine the cost of the tax-free items, we need to first calculate the total amount of tax paid.
Step 1: Calculate the tax paid on taxable purchases.
Tax paid = Total cost * Tax rate
Tax paid = $25 * 6% = $1.50
Step 2: Determine the cost of the tax-free items.
Cost of tax-free items = Total cost - Tax paid
Cost of tax-free items = $25 - $1.50 = $23.50
Therefore, the cost of the tax-free items was $23.50.
To find the cost of the tax-free purchases, we need to subtract the amount of tax from the total purchase amount.
Step 1: Find the amount of tax paid.
Given that 30 cents went towards sales tax and the tax rate is 6%, we can set up the following equation:
0.06x = 0.30
Solving for x, we find:
x = 0.30 / 0.06
x = $5
Step 2: Calculate the cost of the tax-free purchases.
To get the cost of the tax-free purchases, we subtract the amount of tax paid from the total purchase amount:
Cost of tax-free purchases = Total purchase amount - Tax paid
Cost of tax-free purchases = $25 - $5
Cost of tax-free purchases = $20
Therefore, the cost of the tax-free purchases is $20.
0.06C = 0.30
C = $5.00