Karl's net income is always 80 percent of his gross income. What will be the increase in Karl's net income when his gross income increases from $20,000 to $25,000?

Calculate Karl's net income at both points using the given percentage. His initial net income is 80% of \$20,000, which is \$16,000, and his new net income is 80% of \$25,000, which is \$20,000. The difference between the two net incomes is $20,000 - $16,000, resulting in an increase of $4,000.

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