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If the sales tax is reduced from 8% to 6%, then what would be the difference in the price of rs.250 of an item?
  1. Rs. 3
  2. Rs. 5
  3. Rs. 6
  4. Rs. 7
Explanation

Given:

  • Price = Rs. 250
  • Old sales tax = 8%
  • New sales tax = 6%

Step 1: Difference in tax rate
 8% − 6% = 2%

Step 2: Calculate 2% of Rs. 250

2/100x250 =5

frac{2}{100} times 250 = 5

Rs. 5

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