A shopkeeper marks an article 60% above cost price. He gives a discount of 25%. Find the profit percentage.

The correct option is 20%.

Step-by-Step Explanation:

Step 1: Assume a base Cost Price (CP)
Let the Cost Price of the article be $\mathrm{CP}=100$.

Step 2: Calculate the Marked Price (MP)
The shopkeeper marks the article 60% above the cost price.
$\mathrm{Marked\; Price\; (MP)}=\mathrm{CP}+(60\%\text{of}\mathrm{CP})$

$\mathrm{MP}=100+(\frac{60}{100}\times 100)=100+60=160$

Step 3: Calculate the Selling Price (SP) after discount
A discount of 25% is given on the Marked Price.
$\mathrm{Discount}=25\%\text{of}\mathrm{MP}=\frac{25}{100}\times 160=40$

$\mathrm{Selling\; Price\; (SP)}=\mathrm{MP}-\mathrm{Discount}=160-40=120$

Step 4: Calculate the Profit Percentage
$\mathrm{Profit}=\mathrm{SP}-\mathrm{CP}=120-100=20$

$\mathrm{Profit\; Percentage}=(\frac{\mathrm{Profit}}{\mathrm{CP}}\times 100)\%=(\frac{20}{100}\times 100)\%=20\%$

Thus, the profit percentage is 20%.