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    A shopkeeper first increased the price of an item by 12% and then announces a discount of 20%. The actual discount on the original price is:
    Question



    A shopkeeper first increased the price of an item by 12% and then announces a discount of 20%.
    The actual discount on the original price is:

    A.

    12.6%

    B.

    10.4%

    C.

    14.2%

    D.

    12%

    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%.

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