mike went to the bakery and bought eatable 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 items?
How
Well, it seems like Mike has mastered the art of finding tax-free items! Let's break it down.
If 30 cents is 6% of the total taxable purchases, we can set up a proportion:
6/100 = 30/x
By cross-multiplying, we get:
6x = 300
Dividing both sides by 6, we find:
x = 50
So, the cost of the tax-free items is $50. I guess Mike really knows how to make his money dough a long way!
To find the cost of the tax-free items, we first need to calculate the total amount allocated for tax.
We are given that the tax rate is 6% and that 30 cents went towards tax. Let's assume the total cost before tax was x dollars.
Tax Amount = Tax Rate * Total Cost
30 cents = 0.06 * x
Now we can solve for x:
0.06x = 30
x = 30 / 0.06
x = 500
Therefore, the cost before tax (excluding the tax-free items) was $500.
To find the cost of the tax-free items, we need to calculate the total tax paid by subtracting the tax on the taxable purchases from the total cost. Here's how you can calculate it step by step:
1. Calculate the total tax paid:
To calculate the total tax paid, multiply the total cost by the tax rate. In this case, the tax rate is 6%, which can be expressed as 0.06 in decimal form.
Total tax paid = Total cost x Tax rate
= $25 x 0.06
= $1.50
2. Calculate the tax on the taxable purchases:
From the information given, we know that 30 cents went on sales tax on taxable purchases. To find the cost of the taxable items, we need to convert this amount to dollars.
Tax on the taxable purchases = 30 cents = $0.30
3. Calculate the cost of the tax-free items:
To find the cost of the tax-free items, subtract the tax on the taxable purchases from the total tax paid.
Cost of tax-free items = Total tax paid - Tax on the taxable purchases
= $1.50 - $0.30
= $1.20
Therefore, the cost of the tax-free items is $1.20.
taxable items ---- x
cost of taxable items = x + .06x = 1.06x
non-taxable items ---- 25-1.06x
.06x = .30
x=5
So he bought 5$ of taxable and 19.70$ of nontaxable items.
check:
5 + .06(5) + 19.75
=