An item is sold at 25% discount making a profit of 20%. If the discount is reduced to 15%, what will be the new profit percentage?

Question: An item is sold at 25% discount making a profit of 20%. If the discount is reduced to 15%, what will be the new profit percentage?

Solution:
Let,
the cost price is 100
So, the selling price is 120

Giving 25% discount, then
⇒ x - 25% of x = 120
⇒ x - (x/4) = 120
⇒ 3x/4 = 120
∴ x = 160

Now,
giving 15% discount,
160 - 15% of 160 = 160 - 24 = 136
So the new selling price is 136 taka.

So profit = 136 - 100 = 36

When the discount is reduced to 15%, the profit becomes 36%.