Correct Answer - Option 1 : 20

Let the Cost price of the table be a

Since he gains a profit of 60%, the selling price = a + (60/100) × a = 1.6a

Let the Marked price of the table be b

⇒ b – (20/100) × b = 1.6a

⇒ b = 2a

Now, if he sells the table at 40% discount

⇒ New selling price will be = 2a – (2a) × (40/100)

⇒ New selling price = 1.2a

∴ New profit percent = [(1.2a – a)/a] × 100 = 20%