An article costing Rs. 20 was marked 25% above the cost price. After two successive discounts of the same percentage, the customer now pays Rs. 20.25. What would be the percentage change in profit had the price been increased by the same percentage twice successively instead reducing it?

Answer: Option D

The successive discounts must have been of 10% each As
20 (CP) == 25%↑ ⇒ 25(MP) == 10↓ ⇒ 22.5 == 10%↓ ⇒ 20.25(SP)

Profit = 20.25 - 20 = 0.25
Increased percentage if price have been increased twice successively instead of reducing it,
20(MP) == 10%↑ ⇒ 27.5 == 10%↑ ⇒ 30.25
Profit = 30.25 - 20 = 10.25.
Profit Change = 10.25 - 0.25 = 10
Percentage Profit change,
= $$\frac{10\times 100}{0.25}$$
= 4000%