Answer:
The correct answer is 40% of overall price reduction.
Explanation:
First step, we get the "sale price" that is 20% off. If the original price is "x", and the sale price is "y"
y= x- 0,20x
y=0,80x
Then we have another discount, 25% of the sale price, we will call this new price "z"
So, z=y-0,25y
z= 0,75y
Replacing
z=0,75*(0,80x)
z=0,60x
Overall reduction (OR) is the original price(x) minus the final price (z)
OR= x - z = 1- 0,60x = 0,40x
Linz will pay 60% of the original price , so the overall discount is 40%