What is the total cost if a Rs.40 item is taxed at 5%?
What is the total cost if a Rs.40 item is taxed at 5%?
Explanation
To calculate the total cost:
Tax amount = 5% of Rs. 40
= 0.05 × 40
= Rs. 2
Total cost = Item price + Tax amount
= Rs. 40 + Rs. 2
= Rs. 42