A trader marks an item 25% above cost price, then allows successive discounts of 8% and 5% on the marked price.

Let cost price = 100. Marked price = 125.

After an 8% discount: 125 × 0.92 = 115.
After a further 5% discount: 115 × 0.95 = 109.25.

Profit = 109.25 − 100 = 9.25%.

Tip: successive discounts of 8% and 5% combine to a single discount of 8 + 5 − (8×5)/100 = 12.6%, so selling price = 125 × 0.874 = 109.25 — same result, faster.