Ginni went to the stationery shop and bought things worth Rs50, out of which 60 paise went on sales tax on taxable purchases. If the tax rate was 12%, then what was the cost of the tax free items?

Options

A. Rs 40
B. Rs 42.50
C. Rs 44.40
D. Rs 28

Answer

To solve the problem, we need to find the cost of tax-free items that Ginni bought. Let's break it down step by step.

### Step 1: Understand the total cost and sales tax
Ginni's total expenditure is Rs. 50, which includes both taxable and tax-free items. The sales tax paid on the taxable items is Rs. 0.60 (or 60 paise).

### Step 2: Define the variables
Let the cost of taxable items be \( X \) rupees. Since the tax rate is 12%, the sales tax on taxable items can be expressed as:
\[ \text{Sales Tax} = \text{Taxable Cost} \times \text{Tax Rate} \]
This can be written as:
\[ 0.12X = 0.60 \]

### Step 3: Solve for \( X \)
Now, we can solve for \( X \):
\[ X = \frac{0.60}{0.12} = 5 \]
So, the cost of taxable items is Rs. 5.

### Step 4: Calculate the cost of tax-free items
Now that we have the cost of taxable items, we can find the cost of tax-free items. The total cost is Rs. 50, so:
\[ \text{Cost of Tax-Free Items} = \text{Total Cost} - \text{Cost of Taxable Items} \]
Substituting the values:
\[ \text{Cost of Tax-Free Items} = 50 - 5 = 45 \]

### Conclusion
The cost of tax-free items is Rs. 45.