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?
- Rs. 3
- Rs. 5
- Rs 12
- None
Explanation
Sales tax of 5% on the purchase of the item = 5% of 250
Sales tax of 4% on the purchase of the item = 4% of 250
Therefore, the difference in the item's purchase will be,
= 5% of 250 - 4% of 250
= 5/ 100 x 250 - 4 / 100 x 250
= 12.5 - 10
= 2.5
ND22-6-2023
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