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?
If .30 = .06x, then x = 5
So, $5 was taxed, and $20 was tax-free
In simple words U have got $25.Subtract 6 from 25 u got 119 and then subtract 30 cents from it u will get $19.70
To find the cost of the tax-free items, we need to calculate the total amount that went towards the sales tax and then subtract it from the total purchase cost.
First, we calculate the sales tax amount:
Sales tax = Total purchase amount * Tax rate
Sales tax = $25 * 6% = $1.50
Next, we subtract the sales tax from the total purchase cost to find the cost of the tax-free items:
Cost of tax-free items = Total purchase cost - Sales tax
Cost of tax-free items = $25 - $1.50 = $23.50
Therefore, the cost of the tax-free items is $23.50.
To find the cost of the tax-free items, we first need to determine the cost of the taxable items.
We know that the tax rate is 6% and Mike spent 30 cents on sales tax.
Let's assume the cost of the taxable items is "x". In this case, the tax on taxable purchases is 6% of "x".
So, the equation becomes:
0.06 * x = 0.30
To solve for "x", we divide both sides of the equation by 0.06:
x = 0.30 / 0.06
x = $5
Now that we know the cost of the taxable items is $5, we can find the cost of the tax-free items by subtracting the tax amount from the total purchase amount:
Total purchase amount = $25
Tax amount = $0.30
Cost of tax-free items = Total purchase amount - Tax amount = $25 - $0.30 = $24.70
Therefore, the cost of the tax-free items is $24.70.