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Suppose selling price is x
Marked Price = 1.25 x
Cost Price = 1.25 x - .4(1.25x)= 1.25x- .5x
Cost Price = .75x
Selling Price = Cost Price + Profit
Profit = Selling price - Cost price
= x - 0.75x
=0.25x
Hence Profit is 25 %
Discount is 25 %
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