A merchant purchases a cloth at a rate of Rs.100 per meter and receives 5 cm length of
cloth free for every 100 cm length of cloth purchased by him. He sells the same cloth
at a rate of Rs.110 per meter but cheats his customers by giving 95 cm length of cloth
for every 100 cm length of cloth purchased by the customers. If the merchant provides
a 5% discount, the resulting profit earned by him is

1. 15.5%
2. 9.7%
3. 4.2%
4. 16%