Quantitative Aptitude Profit and Loss Discount and MP

By selling an article for Rs. 880, a shopkeeper gains 10%. Due to the reduction in sales, he allows a discount of 25% on the previous selling price. His gain/loss percentage during the sale is:

1
gain 17.5%
2
loss 17.5%
3
loss 18.6%
4
gain 18.6 %

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