Verified Answer :

If you mean the price is now 120% of the original, $4.74 (3.95 * 0.8) is the new price.

If you mean the price is now 80% of the original, $
3.16 (3.95 * 1.2) is the new price.

3.95x20=79/100=0.79

3.95
+ 0.79
_____
4.74 is the new price