Answer:
The correct answer is 40% of overall price reduction.
Explanation:
First step, we get the "sale price" that is 20% off. If the original price is "x", and the sale price is "y" 
 y= x- 0,20x 
y=0,80x 
Then we have another discount, 25% of the sale price, we will call this new price "z" 
So, z=y-0,25y 
z= 0,75y 
 
Replacing 
z=0,75*(0,80x) 
z=0,60x 
Overall reduction (OR) is the original price(x) minus the final price (z) 
OR= x - z = 1- 0,60x = 0,40x 
 
Linz will pay 60% of the original price , so the overall discount is 40%