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Sticky Note
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 12
  4. 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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