The price increased by 20% to reach \(\$48\), so \(\$48\) is 120% of the original price. Then a 25% reduction is applied to \(\$48\).<br><br>&bull; Original price = \(\$48 \div 1.20 = \$40\)<br>&bull; Final price after 25% reduction = \(\$48 \times 0.75 = \$36\)<br><br>Final Answer: \(\$36\)