
Shortcut Trick
When any value is first increased by R% and then decreased by R%, there is always a net loss.
The net loss percentage is given directly by the formula: Loss % = (R2 ÷ 100)%
Here, R = 25%. (The absolute value of Rs. 250 is not needed for finding the percentage).
⇒ Net Loss % = (252 ÷ 100)% = 625 ÷ 100 = 6.25%
∴ The correct answer is Loss of 6.25%.

Alternate Method
Given:
Price after a 25% increase = Rs. 250
Discount offered on the new price = 25%
Formula Used:
Loss = Original Price − Final Selling Price
Loss Percentage = (Loss ÷ Original Price) × 100

Calculations:
Let the original price of the article be x.
⇒ x + 25% of x = 250
⇒ 1.25x = 250
⇒ x = 250 ÷ 1.25 = Rs. 200
Now, a 25% discount is offered on the new price (Rs. 250).
⇒ Discount = 25% of 250 = (25 ÷ 100) × 250 = Rs. 62.5
⇒ Final Selling Price = 250 − 62.5 = Rs. 187.5
Since the Final Selling Price is less than the Original Price, there is a loss.
⇒ Loss = Original Price − Final Selling Price
⇒ Loss = 200 − 187.5 = Rs. 12.5
⇒ Loss Percentage = (12.5 ÷ 200) × 100
⇒ Loss Percentage = 6.25%
∴ The correct answer is Loss of 6.25%.

Additional Information
Successive Percentage Change
When a value is successively changed by x% and y%, the net percentage change is given by: x + y + (x × y) ÷ 100. If it's an increase, use a positive sign; if a decrease, use a negative sign.
Same Increase and Decrease
If a number is increased by R% and then decreased by R%, the net effect is always a decrease (or loss). The effective loss is calculated as (R2 ÷ 100)%.
Extraneous Data in Percentage Problems
In questions asking strictly for a final percentage or ratio, the absolute numerical values (like Rs. 250) are not required and can be safely ignored to save calculation time.