A shopkeeper first increases the price of an item by 12% and then announces a discount of 20%. What is the actual discount on the original price?

A12.6%

B12.4% ✓ Correct

C14.2%

D12%

Correct answer: (B) 12.4%

Explanation

The actual discount comes to 10.4% on the original price.

Raising by 12% gives a factor of 1.12.

A 20% discount gives a factor of 0.80.

Net factor = 1.12 x 0.80 = 0.896.

Actual discount = 100% - 89.6% = 10.4%.

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