A person sells a radio at a price of $1000$ at $20\%$ discount to another person. The second person increases its price by $400$ and sells it at $25\%$ discount. What is the percent profit made by the second person?

The first person sells the radio at a 20 percent discount on a price of 1000, so the second person's cost price is 80 percent of 1000, which equals 800. The second person increases the price by 400 to 1200 and sells it at a 25 percent discount, making the selling price 75 percent of 1200, which is 900. The profit made by the second person is 900 minus 800, which is 100. The profit percentage is 100 divided by 800 multiplied by 100, yielding 12.5 percent.

• Thanks
• Wrong explanation