Correct Answer - Option 2 : 25%

**Given:**

A shopkeeper sold at 25% profit

**Formula used:**

Profit% = (Profit/costprice) × 100

**Calculation:**

Let the C.P. = 100 unit

⇒ profit = 25% then S.P. = 125 Unit

⇒ C.P. reduced by 20% = 100 - 20= 80 unit

⇒ New S.P. after reduing 20% = 125 - (20% of 125) = 80% of 125

⇒ new S.P. = \(\frac {80}{100} \times125\) = 100 unit

**Profit= new S.P. - new C.P.**

⇒ 100 - 80 = 20 unit

**Percentage profit = \(\frac{Profit}{C.P.}\times 100\)**

⇒ Percentage profit = \(\frac{20}{80} \times 100\) = 25%

**∴ New percentage of profit over is 25%.**