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 (CP) of the article be $100$.

Step 2: Calculate the Marked Price (MP)
The shopkeeper marks the article 60% above the cost price.
$\text{Marked Price (MP)}=\text{CP}+(60\%\text{ of CP})$
$\text{MP}=100+60=160$

Step 3: Calculate the Selling Price (SP) after discount
A discount of 25% is given on the Marked Price.
$\text{Discount Amount}=25\%\text{ of MP}=\frac{25}{100}\times 160=40$
$\text{Selling Price (SP)}=\text{MP}-\text{Discount Amount}$
$\text{SP}=160-40=120$

Step 4: Calculate the Profit Percentage
$\text{Profit}=\text{SP}-\text{CP}=120-100=20$
$\text{Profit Percentage}=(\frac{\text{Profit}}{\text{CP}}\times 100)\%=(\frac{20}{100}\times 100)\%=20\%$

Thus, the profit percentage is 20%.