Selling price of pen after first discount = Rs. 16 × (88/100) = Rs. 14.08 A second discount is given bringing the price down to Rs. 10.56. So, price drop in second discount = Rs. 14.08 - 10.56 = Rs. 3.52 ∴ The second discount rate = [(3.52/14.08) × 100] = 25%