A shopkeeper marks the price of an article at ₹3,930. Find the cost price if after allowing a discount of 40% he still gains 20% on the cost price.​

Correct option is B

Given:
- Marked price (MP) of the article = ₹3,930
- Discount allowed = 40%
- Profit gained = 20% on the cost price (CP)
Formula Used:
Selling Price (SP) = Marked Price - Discount
Profit = Selling Price - Cost Price
Profit Percentage =$$(\frac{Profit }{ Cost \ Price})$$​ × 100
Solution:
Discount = 40% × 3930 = ₹1,572
Selling Price = Marked Price - Discount = 3930 - 1572 = ₹2,358
Profit = 20% of Cost Price = 0.2 × CP
Selling Price = Cost Price + Profit
2358 = CP + 0.2 × CP
2358 = 1.2 × CP
Solving for Cost Price: CP = 2358 / 1.2 = ₹1,965
The cost price (CP) of the article is ₹1,965.