jmc

Applying a $20\%$ discount is equivalent to multiplying by $1-20\%=1-0.2=\frac{4}{5}$. Similarly, applying a $25\%$ discount is equivalent to multiplying by $\frac{3}{4}$. Applying both discounts, we multiply by $\frac{4}{5}\cdot \frac{3}{4}=\frac{3}{5}=0.6$. Since $1-0.6=0.4=40\%$, multiplying by 0.6 gives a $\boxed{40\%}$ discount.