A shopkeeper allows his customers 8% off on the marked price of goods and still gets a profit of 19.6%. What is the actual cost of an article marked ₹5,200?

Given:

Marked price (MP) = ₹5,200

Discount = 8%

Profit = 19.6%

Formula used:

Selling Price (SP) = MP - Discount

Cost Price (CP) = SP / (1 + Profit%)

Calculation:

SP = 5200 - (8/100) x 5200

⇒ SP = 5200 - 416

⇒ SP = 4784

CP = 4784 / (1 + 19.6/100)

⇒ CP = 4784 / 1.196

⇒ CP = 4000

∴ The correct answer is option 1.