Correct Answer - Option 2 : 8%

**Given**

Marked price = 20% above the cost price

Discount = 10%

**Formula Used**

Profit% = ((S.P – C.P)/100) × 100

**Calculation: **

Let cost price of item = 100 Rs.

Marked price = 120 Rs

Discount = 120 × 10/100 = 12 Rs.

Net S.P = 120 – 12 = 108 Rs.

Profit% = (8/100) × 100 = 8%

**∴ The required answer is 8%**