Correct option is B
Let the original price of the item be P.
After a 12% increase, the price becomes:
P + (12/100) x P = 1.12P
Now, a 20% discount is announced on the increased price:
1.12P - (20/100) x 1.12P = 0.896P
The actual discount on the original price is:
(P - 0.896P) / P x 100 = 10.4%
Therefore, the actual discount on the original price is 10.4%.
So, the correct answer is (b) 10.4%.