He sells 500*.8=<<500*.8=400>>400 newspapers
He sells them for 400*2=$<<400*2=800>>800
He gets a discount of 2*.75=$<<2*.75=1.5>>1.5 on the newspapers
So he buys them for 2-1.5=$<<2-1.5=.5>>.5
So he spent 500*.5=$<<500*.5=250>>250 buying them
That means he made a profit of 800-250=$<<800-250=550>>550
#### 550